1. 1

3. 3
 DEMAND
Definition
The Law Of Demand
Assumption
Demand Curve
Determinants Of
Demand

4. 4

SUPPLY
Definition
Law Of Supply
Assumptions
Supply Curve
Determinants Of
Supply
 Conclusion

5. 5
Definition:

6. 6
 The law of demand holds that other things equal,
as the price of a good or service rises, its quantity
demanded falls.
– The reverse is also true: as the price of a good or
service falls, its quantity demanded increases.

7. 7
 Income Remain Constant
 Price of related good should
not change
 No changes in future expectation

8. 8
Number of Bottles
per Month
Price per
Bottle
A
When the price is $4.00
per bottle, 40,000 bottles
are demanded (point A).
B
At $2.00 per bottle,
60,000 bottles are
demanded (point B).
40,000 60,000
$4.00
2.00

9. 9
 Change In Taste And Fashion.
 Changes In Income.
 Changes In Weather.
 Changes In Population.

10. 10
Supply is the quantity of output
brought for sale in the market at a
certain price
Definition:

11. 11
 If nothing else changes, firms are
willing to supply a greater quantity of
good or service at higher prices than
lower.

12. 12
 Constant cost of production
 Constant price of capital goods
 Constant technology

13. 13
Number of Bottles
per Month
Price per
Bottle When the price is $2.00
per bottle, 40,000 bottles
are supplied (point F).
At $4.00 per bottle,
quantity supplied is
60,000 bottles (point G).
40,000 60,000
$4.00
2.00

14. 14
 Change In Production Cost.
 Change In Agriculture Output.
 Development And Order Situation In The Country.
 Law And Order Situation In The Country.

15. To optimize equilibrium point it a
corroboration is necessary between demand
and supply.
Demanding the supply or supplying the
demand is the key of growth in the market
economy.
15

16. 16