DEMAND
Demand refers to the number of goods or services the consumer willing to purchase at any given period of time.
LAW OF DEMAND
The law of demand states the price rises when the quantity demand falls and vice versa other things remaining constant.
Example: Suppose, the price of a potato tends to rise in that case people will buy less quantity of potato. On the other hand, if the price of the potato falls, in this case, people will buy potatoes in bulk so that to avoid buying potatoes in huge amount afterwards.
The law of demand states the price rises when the quantity demand falls and vice versa other things remaining constant.
Example: Suppose, the price of a potato tends to rise in that case people will buy less quantity of potato. On the other hand, if the price of the potato falls, in this case, people will buy potatoes in bulk so that to avoid buying potatoes in huge amount afterwards.
DEMAND CURVE
The demand curve is the graphical representation of the law of demand. It is drawn with price in the vertical axis and quantity demand on the horizontal. The graph represents the curve as downward sloping from left to right because the price is inversely proportional to quantity demand i.e lower the price higher the quantity demand and vice versa.
The demand curve is the graphical representation of the law of demand. It is drawn with price in the vertical axis and quantity demand on the horizontal. The graph represents the curve as downward sloping from left to right because the price is inversely proportional to quantity demand i.e lower the price higher the quantity demand and vice versa.
SUPPLY
Supply refers to the willingness of the seller or producer to sell good or services at different prices.
Supply refers to the willingness of the seller or producer to sell good or services at different prices.
LAW OF SUPPLY
Law of supply states that the increase in the price results in the increase in the quantity supply and vice versa other things remaining constant.
Law of supply states that the increase in the price results in the increase in the quantity supply and vice versa other things remaining constant.
Example: There is a drought and very few strawberries are available. More people want the strawberries than there are berries available. The price of strawberries increases dramatically.
SUPPLY CURVE
The supply curve is a graphical representation of the law of supply. It is drawn with price in the vertical axis and quantity supply in the horizontal axis. The graph represents the curve as upward sloping from left to right because the price is directly proportional to quantity supply i.e higher the price, higher the quantity supply and vice versa other things remaining constant.
FACTORS AFFECTING DEMAND OF PRODUCT
1. Price of the commodity
2. Price of Related Goods
3. Income of the Consumer
4. Taste and Preference
5. Future price Expectations
1. Price of the commodity
2. Price of Related Goods
3. Income of the Consumer
4. Taste and Preference
5. Future price Expectations
FACTORS AFFECTING SUPPLY OF PRODUCT
1. Price of the given commodity
2. Cost of Production
3. Technology
4. Taxation Policy
5. Factors of Production
6. Objectives of the firm
1. Price of the given commodity
2. Cost of Production
3. Technology
4. Taxation Policy
5. Factors of Production
6. Objectives of the firm
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