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8 : Theory of Demand
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Prof. Trupti Mishra, School of Management, IIT Bombay
Introduction to Managerial economics
Basic concepts used in business decision making
Important tool and techniques of economic analysis
Optimization techniques
Recap from last module
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Prof. Trupti Mishra, School of Management, IIT Bombay
Market works on certain market principles – law that governs the
working of market system- market mechanism.
The working of market system – fundamental Laws of market
Law of Demand and Supply
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Prof. Trupti Mishra, School of Management, IIT Bombay
Session Outline
•Defining Demand
• Law of Demand
•Demand Schedule/Demand Curve/Demand Function
• Factors affecting Demand
• Change/Shift in the Demand
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Prof. Trupti Mishra, School of Management, IIT Bombay
Session Outline
•Supply/ Law of Supply
• Supply Schedule/Supply Curve/Supply Function
• Factors affecting Supply
• Change/Shift in the Supply
•Market Equilibrium
Prof. Trupti Mishra, School of Management, IIT Bombay
A relation showing the quantities of a good that consumers are
willing and able to buy at various prices per period, other
things constant.
What is Demand?
Demand for commodity implies
Desire to acquire it
What is Demand?