1. -Suvarna Kamble.

2.  It refers to the quantity of a
good or service that
consumer are willing and able
to purchase at various prices
dealing a period of time.
 In Economics, demands refer
to effective demand ,which
implies three things:
 Desire
 Ability to Pay
 Willingness to Pay.

3.  Price of the commodity
 Income of the consumer
 Tastes and preferences
 Prices of related goods
 Advertisement and sales
propaganda
 Consumer’s Expectation
 Growth of Population
 Weather conditions
 Tax rate
 Availability of credit
 Pattern of saving
 Circulation of money

4. Is any good or service
produced for sale in the
market.

5.  Individual and market
Demand:
 The quantity of a commodity
which an individual is willing to
buy at a particular price of the
commodity during a specific
time period is known as
“Individual Demand”.
 The total quantity which all the
consumers of a commodity are
willing to buy at a given price
per time unit is known as
“Market Demand”.

6.  Demand For Firm’s Product and Industry’s
Products:
 The quantity of a firm’s produce that can be disposed
of at a given price over a time period denotes the
demand for the ‘Firms Product’.
 The aggregate of demand for the product of all the
firms of an industry is known as the market demand
for industry’s product.

7.  Autonomous and Derived Demand:
 Autonomous Demand for the commodity is one that
arises independent of the demand for any other
commodity. eg: Food ,clothes , shelter etc.
 Derived Demand is one that is tied to the demand for
some Parent Product eg: Demand for land ,Fertilizers
etc.

8.  Demand for Durables and Non Durables goods:
 Durable goods are those, whose total utility (or use) is
not exhausted by a single use. Such goods can be used
repeatedly or continuously over a period.
 Non Durable goods are those which can be used or
consumed only once (eg: food items) and their total
quantity is exhausted in a single use.

9.  Short term and long term demand:
 Short term demand refers to the demand for such
goods as are demanded for short period.
 Eg: seasonal goods and fashion consumer goods.
 Long term demand is which exist for longer period
eg: Durables .
 Joint Demand and Composite Demand :
 When two or more goods are jointly demanded at the
same time to satisfy a single want it is called joint or
complementary demand.
 Eg: Pen and ink, Tea and sugar, cars and petrol

10.  Direct and Indirect Demand :
 Demand for goods that are directly used for
consumption by the ultimate consumer is knows as
direct demand. Eg: bread ,Tea, Readymade Shirts ,
Scooters etc.
 Indirect Demand is the demand for goods that are not
used by consumers directly. They are used by
producers for producing other goods .
 Total Market and Market Segment Demand:
 The total market demand will be aggregate demand
for the product from all the segments while market
segment demand would refers to demand for the
product in that specific market segment.

11.  The demand function is an
algebraic expression of the
relationship between demand
for a commodity and its
various determinants that
affect this quantity.

12.  Individual Demand function
 D=f(P)
 Market Demand Function
 Dx=F(Px,Pr,M,T,A,U)
 Where,Dx=Quantity demanded
for commodity x,
 F=functional relation
 Px=Price of commodity x
 Pr=Prices of related
commodities
 M=Money Income of the
consumer
 T=The taste of the consumer
 A=Advertisement effect
 U=Unknown variables

13.  Law of demand explains the
relationship between change
in the quantity demanded
and change in price.
 It states that higher the price ,
the lower would be the
quantity demanded in the
market.
 In other words , the law of
demand says that the price
and the quantity demanded
in the market are inversely
related ,all other things being
equal.

14.  “The amount demanded
increases with fall in price,
and diminishes with a fall in
price”
 Thus it Expresses an inverse
relation between Price and
Demand.
 The Law refers to the
direction in which quantity
demanded changes with a
change in price.

15.  Income level should remain
constant
 Tastes of the buyer should
not change
 Prices of other goods should
remain constant
 No new Substitutes for the
commodity
 Price rise in future should not
be expected

16.  Demand Schedule is a table
or a chart which shows the
relationship between price
and demand of a commodity
or service unit of time.
 Demand schedule establishes
a functional relationship
between independent variable
price and dependent variable
demand.

17.  The Graphical representation of the demand
schedule is the demand curve
 Individual Demand curve indicates the
quantity of the commodity that an
individual will buy at different Prices.

18.  According to Law of Demand
,more of the commodity will
be demanded at lower prices,
than at higher prices, other
things being equal.
 The Law of Demand is valid
in most of the cases ,however
there are certain cases where
this law does not hold good.
 The following are the
important exceptions to the
law of Demand:

19.  Conspicuous goods
 Giffen goods
 Necessities of Life
 Conspicuous Necessities
 Future Expectations about
Prices
 Impulsive Purchases
 Ignorance Effect
 Outdated Goods