Market Demand Analysis presentation by Bakkaprabhu Uppar

May 8, 2023Download as pptx, pdf

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The document presents an analysis of market demand, defining demand as the willingness of buyers to purchase goods at various prices over time. It categorizes demand into several types, including consumer and producer goods, perishable and durable goods, and distinguishes between autonomous and derived demand, among others. The presentation concludes with a discussion on the implications of pricing and income changes on demand in both short and long run scenarios.

Economy & Finance

Market Demand
Analysis
PRESENTATION BY : BAKKAPRABHU UPPAR
MANAGERIAL ECONOMICS, MCOM 1ST SEM

What is Demand
? Demand refers the effective demand, the amount of buyers are willing to
purchase at a given price and over a given period of time.
? For Ex: A fall in price of cars will lead to an increase in
the demand for petrol.

Types of Demand:-
1. Demand for Consumer's Goods & Producers Goods
2. Demand for Perishable Goods & Durable Goods
3. Autonomous Demand & Derived Demand.
4. Industry Demand & Firm/Company Demand
5. Short run Demand & Long run Demand
6. Joint Demand & Composite Demand
7. Price Demand, Income Demand & Cross Demand

1. Demand for Consumer's Goods &
Producer's Goods
? Goods & Services demand by consumers for the direct satisfaction of their
wants, consumption purpose - Consumer Goods
? Ex: clothes, house, services of lawyer, doctor, teacher etc..
? Goods which are demanded by producers in the process of production –
Producer's Goods (Capital Goods)
? Ex: Tools & Equipements, Raw Materials, Factory Building etc..

2. Demand for Perishable Goods &
Durable Goods
? Perishable Goods have no durability, that is, they can't be stored for longer
time
? Ex: Eggs, Milk, Fish, Vegetables etc..
? Durable Goods last long, where as perishable goods perish soon. Durable
goods are storable for longer period of time.
? Ex: House, Furniture, Car, Clothes etc..

3. Autonomous Demand & Derived
Demand.
? Spontaneous demand for goods, which is based on an urge to satisfy
some wants directly – Autonomous Demand
? Demand for consumer goods is autonomous. It is final, it is direct demand
? When the demand for a product on the demand for some other
commodities is called derived demand.

4. Industry Demand & Firm/Company
Demand
? A firm is a business unit : Industry is the group of closely competitive firms.
Industry demand refers to the total demand for the commodity produced
by a particular industry.

5. Short run Demand & Long run
Demand
? Short run demand refers to existing demand with its immediate reaction to
price changes, income fluctuation, etc..
? Long run demand is that which ultimately exist as a result of changes in
pricing, promotion or product, improvement, after enough time is allowed
to let the market adjust itself to the new situation.

6. Joint Demand & Composite
Demand
? When two goods are demanded in conjunction with one another at the
same time to satisfy a single want, they are said to be joint or
complimentary demand.
? Ex: Pen, Ink, cars, petrol, bread, sugar and milk etc..
? A commodity is said to be in composite demand, when it is wanted for
several different uses.
? Ex: Milk (for cheese, yoghurts, cream)

7. Price Demand, Income Demand &
Cross Demand
? Price Demand : Various Quantities of a product purchased by the
consumer at different prices. (this function is based on single price)
? Income Demand : Various Quantities of a commodity demanded by the
consumer at alternative levels of his changing money income.
? Cross Demand : Various Quantities of a commodity (say x) purchased by
the consumer in relation to change in the price of a related commodity
(say y, which may be either a substitute or a complementry product)

This document defines demand and discusses the different types of demand. It begins by defining demand as a consumer's willingness and desire to pay a price for a good or service. It then lists and briefly describes seven types of demand: individual vs market demand, autonomous vs derived demand, demand for durable vs non-durable goods, short-term vs long-term demand, joint vs composite demand, direct vs indirect demand, and total market vs market segment demand. The document also defines product and discusses the narrow and wider concepts of defining a product.

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Market Demand Analysis presentation by Bakkaprabhu Uppar

1. Market Demand Analysis PRESENTATION BY : BAKKAPRABHU UPPAR MANAGERIAL ECONOMICS, MCOM 1ST SEM

2. What is Demand ? Demand refers the effective demand, the amount of buyers are willing to purchase at a given price and over a given period of time. ? For Ex: A fall in price of cars will lead to an increase in the demand for petrol.

3. Types of Demand:- 1. Demand for Consumer's Goods & Producers Goods 2. Demand for Perishable Goods & Durable Goods 3. Autonomous Demand & Derived Demand. 4. Industry Demand & Firm/Company Demand 5. Short run Demand & Long run Demand 6. Joint Demand & Composite Demand 7. Price Demand, Income Demand & Cross Demand

4. 1. Demand for Consumer's Goods & Producer's Goods ? Goods & Services demand by consumers for the direct satisfaction of their wants, consumption purpose - Consumer Goods ? Ex: clothes, house, services of lawyer, doctor, teacher etc.. ? Goods which are demanded by producers in the process of production – Producer's Goods (Capital Goods) ? Ex: Tools & Equipements, Raw Materials, Factory Building etc..

5. 2. Demand for Perishable Goods & Durable Goods ? Perishable Goods have no durability, that is, they can't be stored for longer time ? Ex: Eggs, Milk, Fish, Vegetables etc.. ? Durable Goods last long, where as perishable goods perish soon. Durable goods are storable for longer period of time. ? Ex: House, Furniture, Car, Clothes etc..

6. 3. Autonomous Demand & Derived Demand. ? Spontaneous demand for goods, which is based on an urge to satisfy some wants directly – Autonomous Demand ? Demand for consumer goods is autonomous. It is final, it is direct demand ? When the demand for a product on the demand for some other commodities is called derived demand.

7. 4. Industry Demand & Firm/Company Demand ? A firm is a business unit : Industry is the group of closely competitive firms. Industry demand refers to the total demand for the commodity produced by a particular industry.

8. 5. Short run Demand & Long run Demand ? Short run demand refers to existing demand with its immediate reaction to price changes, income fluctuation, etc.. ? Long run demand is that which ultimately exist as a result of changes in pricing, promotion or product, improvement, after enough time is allowed to let the market adjust itself to the new situation.

9. 6. Joint Demand & Composite Demand ? When two goods are demanded in conjunction with one another at the same time to satisfy a single want, they are said to be joint or complimentary demand. ? Ex: Pen, Ink, cars, petrol, bread, sugar and milk etc.. ? A commodity is said to be in composite demand, when it is wanted for several different uses. ? Ex: Milk (for cheese, yoghurts, cream)

10. 7. Price Demand, Income Demand & Cross Demand ? Price Demand : Various Quantities of a product purchased by the consumer at different prices. (this function is based on single price) ? Income Demand : Various Quantities of a commodity demanded by the consumer at alternative levels of his changing money income. ? Cross Demand : Various Quantities of a commodity (say x) purchased by the consumer in relation to change in the price of a related commodity (say y, which may be either a substitute or a complementry product)

11. End of My Seminar Thank You

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Market Demand Analysis presentation by Bakkaprabhu Uppar

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