Law of demand

Law of demand

Demand of any goods and services always show a preference or choice among the options available in the market. A consumer always buys that combination where his satisfaction is higher.

combination of good & services

                                                                                                 In other words, we can say that demand always show a “strong order from consumer side”. We know that when there is “increase in the income, we increase our buying behaviour. Sorely demand decrease of there is a price hike of that particular goods and services”.

Law of Demand

  Assumption for law of demand –

ü  There is no change in the consumer interest

ü  Combination of goods and services always show a consumer preference

ü  Consumer have a strong order for that combination

ü  Consumer choose one combination where other thing remain same

ü  Always prefer to buy more thing then few

ü  Consumer behaviour is given and consistent

ü  Always show a preference in different combination where ‘good x’ is preferred then ‘goods y’ and ‘goods y’ is preferred then ‘goods z’ then naturally ‘good x’ is preferred ‘then z’

ü  Always show a positive correlation between income and goods if income increase then a consumer increase its buy behaviour

   

What you know about Demand meaning of demand demand ka mtlb

What you know about “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 a interest in that product & also have buying ability or money.

When, we accumulate all the demand of any product I 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.

Demand analysis – demand is the equal to the quantity which a consumer wants to but on different price when other thing remains same in the economy. Demand theory or curve show the buying behaviour of consumer on different price. If any things have a high price, few people show interest to buy on that price. But if same product have a less price or cheaper then lot of people show their interest to buy that product.

For example – if any things have a high price like 5 rupee then we buy 10 units,

4 rupee we buy 20 units,

3 rupee we buy 30 units,

2 rupee we buy 45 units,

1 rupee we buy 65 units

Demand with different price

These things show that on high price, we have low demand and on cheaper or low price, we have more or lot of demand.   


Increase in Demand 

Decrease in Demand

Income Demand