3. Whenever the demand change for the given
commodity due to change in it’s own price the
such change in the demand is known as change
in “quantity demanded”.
Whenever demand for the given commodity change
due to factor other than the price then such change
in demand is known as “change in demand” .
4. PRICE OF THE COMMODITY ITSELF .
PRICE OF RELATED GOODS .
A. Substitute goods
B. Complementary goods
Income of the consumer .
5. It is the most important factor affects
the demand. Price of the commodity
having the negative relation with the
quantity demanded, as price increase
the quantity demanded decrease and
vice versa.
6. SUBSTITUE GOODS :-
substitute goods are those goods which can be used in
place of one another for satisfaction of particular wants .like
Coffee can be used in place of tea .it has the positive
relation with the demand as price of substitute goods
increase the demand of the commodity increase
Complementary goods :-
complementary goods are those goods which is necessary
for using the another goods .like sim card to use mobile .it
has the negative relation with demand as price of
complementary goods increase the demand of the
commodity decrease
7. There are four cases in the income of the
Consumer
A. Income increases in case of inferior
Goods = NEGATIVE RELATION
B. Income increase in case of normal
goods = POSITIVE RELATION
C. Income decrease in case of inferior
goods = NEGATIVE RELATION
D. Income decrease in case of normal goods =
POSITIVE RELATION
8. Law of demand state that the price of the
Commodity is inversely proportional to the
quantity demanded of commodity . If price
increase the quantity demanded decrease a
vice versa
PRICE
QUANTIT
YDEMAND
ED
9.
10. Individual demand refers to quantity of the
commodity that a consumer is willing and able to
buy at given price during the given period of
time .
Market demand refers to the quantity of a
commodity that a consumer is willing and able to
buy ,at the given price during a given period of
time.
11. Income of the consumer remain constant.
Price of related goods remain constant.
Taste and preference will not change .
There is no expectation of change in
price in the future .
Taste and preferences of the consumer
remain same
12. According to the law of demand ,demand schedule is the
tabular presentation of inverse relation of price and
quantity demanded of a commodity keeping other factor
constant . following is the example of a demand schedule .
X(PRICE)
5
10
15
25
30
Y (QUANTITY)
20
16
12
10
07
CONCLUSION : - ABOVE TABLE SHOWS THE NEGATIVE RELATION B/W
THE PRICE AND QUANTITY DEMANDED OF THE COMMODITY
13. Demand curve is a graphical presentation
of the demand schedule which show the
content of demand schedule assuming no
Change in other factor .
(PRICE AND QUANTITY DEMANDED)
14. When quantity demanded of a commodity change due
to change in it’s price ,keeping other factor constant ,
it is known as change in quantity demanded and
graphically express as a movement along the demand
curve .
15. There are two types of movement along demand curve
1. Upward movement (contraction in demand ) .
2. Downward movement (expansion in demand ) .
Change in quantity demanded
Occurs due to
Change in price
Leads to
Movement along
demand curve
