Law of deemand (economics)

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Law of demand the 6 chapter of economics what is law of demand ? answer is given in presentation so watch and understand easily

Text of Law of deemand (economics)

  • 1. Law Of Demand Made by. Manesh Kumar Ahuja

2. Demand Supply/Demand Lets look at Demand First Demand = how much a consumer values a good or service during a certain time in other words, how much are customers willing to pay 3. Why Demand ? SATISFACTION NEED WANTS DEMAND PURCHASE 4. Demand Schedule Cookies Price Quantity Demanded/Day $0.50 5 $1.00 4 $1.50 3 $2.00 2 $2.50 1 $3.00 0 5. Demand Schedule Cookies Price QD*Day $0.50 5 $1.00 4 $1.50 3 $2.00 2 $2.50 1 $3.00 0 $ Quantity (0,3) (1,2.5) (2, 2) (3,1.5) (4, 1) (5, .5) The Demand Curve 6. You try one Widget Demand Schedule Price Quantity Demanded 5 10 4 17 3 26 2 38 1 53 D 7. Law of Demand Law of Demand: As price declines, quantity demanded increases. As price increases, quantity demanded decreases Law of Demand: P Therefore Q demand P Therefore Q demand Demand curve always slopes down 8. Description Law of demand explains consumer choice behavior when the price changes. In the market, assuming other factors affecting demand being constant, when the price of a good rises, it leads to a fall in the demand of that good. This is the natural consumer choice behavior. This happens because a consumer hesitates to spend more for the good with the fear of going out of cash. 9. Law of Demand at work Goods/Services that price changes cause changes in Quantity demanded 10. Example of Law of Demand D 11. Think about demand of stocks Lower prices, more shares to buy As price declines. 12. How To know About Demand Increase? Analyze some recent purchases 3. list 3 goods/services that consumers have a very high quantity demanded 4. List 3 goods/services with high quantity demanded if you have a child 5. List 3 good/services where you, personally buy less of it when it gets more expensive 13. Demand Curve Experiment Conduct a demand curve experiment Choose 1 good (snickers bars, Cold drinks,) Make up 5 price points Survey 3 people and find out their demand Graph the 3 demand curves on the same graph Write an explanation of how the experiment shows the law of demand in action AND how a company might use this information 14. Thank You