Stock Market Brief Deck for "this does not happen often".pdf
Supply and Demand - Modern Economics LATiFHRW
1.
2. Submitted to: Madam Syeda Ujala Shah
Presented By:
LATEEF HYDER WADHO (2K18MBA54)
Modern Economics
-Demand and Supply
Institute Of Business Administration
University Of Sindh Jamshoro
3. • Demand is defined as the amount of goods the
consumers are ready to buy for a sustained period
and at a given price point.
• It is the relationship between price and quantity
demanded other things remaining constant.
• Quantity demanded is a flow concept thus time
dimension needs to be mentioned
Concept of Demand
4. • It states that quantity demanded is dependent on
the price, thus for every change in the price the
quantity demanded will change.
• Mathematically,
» X=f(P)
• Where, X = Quantity Demanded
• P = Price to be paid for the quantity demanded
• This relationship is inverse in nature. This is the
reason why the demand curve is negatively sloped.
Law of Demand
6. • Income of consumer
• Existing wealth of consumer
• Change of preferences of consumer
• Expectation regarding future price changes
• Population
Factors influencing the demand curve
7. • Quantity supplied is the amount of a goods that
sellers are willing and able to sell
• Supply is a full description of how the quantity
supplied of a commodity responds to changes in its
price
Supply
8. • A decrease in the price of a good, all other things
held constant, will cause a decrease in the quantity
supplied of the good and an increase in the price of a
good will cause an increase in the quantity supplied
of the good.
Law of Supply
9. • Input prices
• Technology
• Number of sellers
• The market supply will increase if
– Raw materials or labor becomes cheaper
– The technology becomes more efficient
– Number of sellers increases
Changes in Supply