Demand and Supply
A) Demand
1️⃣ Meaning of Demand
Demand refers to the quantity of a good or service that consumers are willing and able to
purchase at a given price and time.
2️⃣ Law of Demand
➡️
According to the law of demand:
➡️
When price increases, demand decreases.
When price decreases, demand increases.
This means price and demand have an inverse relationship.
3️⃣ Demand Curve
● The demand curve is downward sloping from left to right.
● It shows the inverse relationship between price and quantity demanded.
4️⃣ Factors Affecting Demand (Determinants)
1. Price of the product
2. Income of consumers
3. Taste and preferences
4. Price of related goods:
○ Substitutes: Tea and Coffee
○ Complements: Car and Petrol
5. Population size
6. Future price expectations
5️⃣ Exceptions to the Law of Demand
● Giffen Goods
● Luxury or Status Goods
A) Demand
1️⃣ Meaning of Demand
Demand refers to the quantity of a good or service that consumers are willing and able to
purchase at a given price and time.
2️⃣ Law of Demand
➡️
According to the law of demand:
➡️
When price increases, demand decreases.
When price decreases, demand increases.
This means price and demand have an inverse relationship.
3️⃣ Demand Curve
● The demand curve is downward sloping from left to right.
● It shows the inverse relationship between price and quantity demanded.
4️⃣ Factors Affecting Demand (Determinants)
1. Price of the product
2. Income of consumers
3. Taste and preferences
4. Price of related goods:
○ Substitutes: Tea and Coffee
○ Complements: Car and Petrol
5. Population size
6. Future price expectations
5️⃣ Exceptions to the Law of Demand
● Giffen Goods
● Luxury or Status Goods
