DEMAND ANALYSIS

DEMAND= DESIRE +ABILITY TO PAY+WILLINGNESS TO PAY

GOODS ARE DEMANDED BECAUSE THEY HAVE UTILITY.  DEMAND IS THAT QUANTITY OF A COMMODITY WHICH A PERSON IS READY TO BUY AT A PARTICULAR PRICE AND DURING SPECIFIC PERIOD OF TIME.

INDIVIDUAL DEMAND AND MARKET DEMAND

INDIVIDUAL DEMAND IS A DEMAND BY AN INDIVIDUAL .INDIVIDUAL DEMAND IS THE AMOUNT OF A COMMODITY PURCHASED BY AN INDIVIDUAL AT DIFFERENT PRICES .

 MARKET DEMAND IS AN AGGREGATE OF ALL QUANTITIES PURCHASED BY ALL BUYERS OF AN COMMODITY AT DIFFERENT PRICES DURING DIFFERENT PERIOD OF TIME.

 FACTORS AFFECTING DEMAND ARE:

1 PRICE

2 INCOME

3 POPULATIONS

4 TASTE  AND HABITS 

5 PRICE OF SUBSTITUTE AND COMPARABLY  GOODS 

6 DISTRIBUTION OF INCOME

7 EXPECTATIONS OF FUTURE PRICES 

8 ADVERTISEMENT

THUS LAW OF DEMAND EXPLAINS CHANGE IN THE BEHAVIOR OF CONSUMER DEMAND DUE TO VARIOUS CHANGES IN PRICE.