1. D emand & S upply Prepared by: GAURAV SAXENA

3. What is Demand ? A n economic principle that describes a consumer’s desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service increases as its demand increases and vice versa. For the same quantity available if the demand increases then you will end up paying more

4. What is Supply ? S upply is the amount of something, such as a product or service, that a market has available. Holding all other factors constant, the price of a good or service decreases as its supply increases and vice versa. If the supply of a commodity increases then for the same quantity you will be paying less

5. D emand and supply are complementary to each other, a pull or push in one affects the other. The price of a product is determined by the intersection of demand and supply curves Determinant of Price

6. T he original demand curve DD and supply curve SS determines the price P of quantity Q demanded. If the demand increases from Q to Q1 then for the same supply curve price of the commodity rises from P to P1 Demand curve shift

7. I f the supply of certain commodity rises from Q to Q1 without any significant increase in the demand then the price of commodity falls from P to P1 Supply curve shift

8. I f the supply of certain commodity rises from Q to Q1 without any significant increase in the demand then the price of commodity falls from P to P1 Supply curve shift

9. I f the supply of certain commodity rises from Q to Q1 without any significant increase in the demand then the price of commodity falls from P to P1 Supply curve shift

10. I f the supply of certain commodity rises from Q to Q1 without any significant increase in the demand then the price of commodity falls from P to P1 Supply curve shift

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