Determinants of demand

1. Determinants of Demand
Subject :- Managerial Economics and Business
Environment
Subject Teacher :- Mr. Nirav Mandavia
Presented By :- Preeti chaudhary
Date :-

2. Introduction:
Meaning of demand:
 Demand in economics can be termed as an
economic principle that describes a consumer’s
desire and willingness to pay a price for a specific
good or service. Holding all other factors(income ,
price of related goods, taste and preferences,
expectation, advertisement, etc) constant , an
increase in price of a good or service will decrease its
quantity demanded, and vice versa.
 Equation;
Desire + willingness to pay + ability to pay = DEMAND

3. Introduction to Determinants:
Determinants are the factor or
component which tends to change the
quantity demanded for particular
commodity.
The major factors can be highlighted
by raising light on following points:-

5. Practical implication:
In an Indian economy, if the price of
any household commodity such as if
the price of onion increases the
quantity demanded will automatically
decrease and vice-versa.

6. Conclusion:
Thus, it can be concluded as, due to
the above mentioned
factors/determinants, the quantity
demanded of any good or service may
have both either positive or negative
impact.
Therefore, we can say that it
ultimately leaves its huge effect on the
consumption pattern of an economy.