Decrease in Demand

Decrease in Demand

This theory defines by marshal. Demand is the quantity of any product which a consumer has ability to buy on different price. For demand, it is must that consumer have an interest in that product & also have buying ability or money.

When, we accumulate all the demand of any products in an economy that is total demand of product in economy. When we discuss about demand theory, we assume that all thing remain same in the economy.

Decrease in Demand

When we discuss about demand & it analysis, we assume that other thing will be remain same. In other things, we include like income, interest in particular thing & price of other things. If there is a change in any one of the factor like income, if income decrease then our buying power decrease on same price list and know we are able to buy less products on the previous high price. We call it “shift of demand curve or decrease in demand”.

Decrease in Demand

These show that on same price we increase our demand from Z to Y and quantity also from Q to Q1.