law of demand and supply presentation - unitedworld school of business

7/28/2019 Law of Demand and Supply Presentation - Unitedworld School of Business

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Demand Supply Approach


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Supply and Demand Analysis

1. The demand schedule2. The demand curve

3. Demand shift sElasticity of demand4. Price elasticity of demand5. Calculating elasticities6. Elasticity and revenue7. Income elasticity of demand8. Cross elasticity of demand9. Analysis of supply10. The supply schedule11. The supply curve12. Behind the supply curve13. Shift in supply14. Price elasticity of supply

Equilibrium of supply and demand curves15. Equilibrium with supply and demand curves16. Effect of shift in supply or demand17. Interpreting the changes in prices and quantity18. Simultaneous shift in supply and demand19. Rationing by prices

Applying supply and demand20. Impact of a Tax on price and quantity

Prices fixed by law

21. Minimum floor and maximum ceilings


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Demand Function

Amount of goods that a consumer iswilling top buy and able to purchaseover a period of time is known as

quantity demanded for that goodFlow concept

Demand is relationship between

price and quantity demanded otherthings remaining constant

X1 = f {P1}


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Demand Schedule

Price Quantity Demanded

500 10 lakhs

450 11 lakhs400 12 lakhs

350 13 lakhs

300 14 lakhs250 15 lakhs

200 16 lakhs

150 17 lakhs


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Demand Curve

Price

Demand

Demand Curve

0

Y

X


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Law of Demand

Demand curve depicts the inverserelationship between price and quantitydemanded

Downward slopingOther things remaining the same, if theprice of any good decreases its quantitydemanded increases and vice versa

Exceptions Giffen Goods, Veblen effect,Future expectations, share market


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Factors influencing the Demand Curve

Prices of close substitutes andcomplements

Income of the consumer

Existing wealth of the consumerChange in the testes and preferencesof the consumer

Expectations regarding futurechanges in the prices

Population

Special influence

season, law


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Increase in demandY

0

X

Old Demand

Curve

New DemandCurve

Price

Quantity Demanded


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Decrease in Demand (Shift in demand curve)

An Decrease in income

An Decrease in wealth

An Decrease in prices of substitutes

A Increase in the prices ofcomplements

A change in the taste and

preferences against the goodExpectations of a future decrease inprice of a good


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Decrease in demandY

0

X

Old DemandCurve

New Demand

Curve

Price

Quantity Demanded


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Changes in Quantity Demanded vs. Changes in Demand

Changes in quantitydemanded

P

P2

P1

0Q1 Q2

D

D

X

Changes in demanded

P

P2

P1

0Q1 Q2

D

D

D1

D1

X


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Campus Overview

907/A Uvarshad,

GandhinagarHighway,Ahmedabad 382422.

Ahmedabad Kolkata

Infinity

Benchmark, 10thFloor, Plot G1,Block EP & GP,Sector V, Salt-Lake,

Kolkata

700091.

Mumbai

Goldline Business

Centre LinkwayEstate,Next to Chincholi FireBrigade, Malad(West), Mumbai 400064.


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Thank You

law of demand and supply presentation - unitedworld school of business

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