1. Welcome

2. Changes in DEMAND

3. Changes in DEMAND 1. Introduction to demand

4. 1. Introduction to demand

5. 2. Meaning and definition of Demand

6. 2. Meaning and definition of Demand The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price within a period of time. In economics, demandis the desire to own , the ability to pay for it, and the willingness to pay to buy a particular commodity at Price within a given point of time.

7. 3. Demand function

8. 3. Demand function The demand function is the mathematical expression of the functional relationship between the quantity of a good and those factors that affect the willingness and ability of a consumer to buy the good. Demand function >Qd = f(Px, Y , Pr, t, p, w, g, Ad, wealth, etc) When these factor change the demand is also change.

9. 4. Types of Changes in Demand

10. Due to changes in Price of the commodity ( Other factors remaining the same) Extension of demand Contraction of demand Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) Increasing demand – Upward shift in demand Decreasing in demand – Downward shift in demand 4. Types of Changes in Demand

11. Extension of demand

12. Due to changes in Price of the commodity - ( Other factors remaining the same) Extension of demand 5. Due to changes in Price An extension of demand is an rise in the quantity demanded because the price has changed , other factor reaming the same.

13. Price of good 5. Due to changes in Price a) Extension of demand E1 P-12,000 E2 P-8,000 Q -15 Q -20 E1 to E2 Quantity demanded An extension of demand denoteE1 to E2 is an rise in the quantity demanded because the price has changed , other factor reaming the same.

14. Contraction of demand

15. Due to changes in Price of the commodity ( Other factors remaining the same) Extension of demand and Contraction of demand 5. Due to changes in Price b) Contraction of demand An CONTRACTION of demand is an fall in the quantity demanded because the price has changed , other factor reaming the same.

16. Contraction of demand E2 P-15,000 E1 P-12,000 Price of good Q -15 Q -10 Quantity demanded An CONTRACTION of demand is an fall in the quantity demanded because the price has changed , other factor reaming the same.

17. Extension of demand Contraction of demand Are due to changes in Price of the commodity The change taken place on the same demand curve – Movement along the demand curve. Leads to changes on quantity demanded

18. 6.Due to changes in factors other than price

19. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) Increasing demand – Upward shift in demand Decreasing in demand – Downward shift in demand 6.Due to changes in factors other than price

20. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) A shift in demand curve refers to the effect of in demand due to changes in a factor other than price. Shift in demand taken place due to the changes in Income of the consumer Price of related goods Advertisement Government policy Taste and preference etc

21. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) Increasing demand – Upward shift in demand Decreasing in demand – Downward shift in demand

22. a) Increase in demand

24. High level of advertisement E1 P-12,000 a) Increase in demand Price of good Q -15 Quantity demanded

25. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) Increasing demand – Upward shift in demand Price of good E1 E2 P-12,000 a) Increase in demand Q -15 Q -20 Quantity demanded

26. b) Decrease in demand

27. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) Increasing demand – Upward shift in demand Decreasing in demand – Downward shift in demand

29. Low level of advertisement E1 P-12,000 a) Increase in demand Price of good Q -15 Quantity demanded

30. Due to changes in other than Price – Shift in demand ( Price of the commodity remaining the same ) b) decreasing demand – downward shift in demand Price of good E1 E2 P-12,000 a) Increase in demand Q -15 Q -10 Quantity demanded

31. 7. Conclusions

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