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Understanding The Concept Of Demand (for UPSC CSE)
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This lesson starts with a difference between Market Demand vs Individual Demand along with Illustrations. Thereby it explains what is market demand curve and how a shift in demand curve happens. It also tells about the variables which affect the shift in the demand curve with the help of illustrations and examples.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

U
Unacademy user
sir thanks for making crystal clear concept.
Normal goods = income increased - quantity demanded increased. income decreased - quantity demanded decreased. e.g. - ice cream, recreational activities etc. inferior goods = income increased - quantity demanded decreased. income decreased - quantity demanded increased. best example - sasta saaman such as cheap cars (3rd hand), if my income increases the quantity demanded of cheap cars decreases because now I can afford experience cars. similarly if my salary decreases the quantity demanded for cheap cars increases as I cant afford the expensive ones. hope it's clear now.
Aniket Yadav
2 years ago
expensive not experience.
Raj Kumar
9 months ago
not always the inferior goods will show indirect trends with income, it's demand would also remain constant or unchanged with rise or fall in income. Example- salt as sir told
hallo sir, I was watching your prvious 4 lessions, those are really very interesting. sir I hv that query that whether price influces the demand to change or demand influences the price. sir. a/c the law the first is true I think but what about the next???
hi there i strogly believe that "demand do not unfluence the price"
Aswin Venkat
2 years ago
The question which you asked is similar to this... Whether the egg or hen came first?! Both the statements which you have mentioned is true... They are interdependent
Sudhir mishra
2 years ago
prices and demands are influence by other factors as well. for example, in a drought season the price of food grains increases though demand remains the same. But in turn the rise in food grain prices will decrese its demand.similarly,the demand is not only influenced by prices but also by income variation. got it
Rohit Dewangan
2 years ago
it completely depends on the factors affecting the specific goods... as presented in the slides previously, if there will be adverse factors like adverse monsoon, the food for the consumer will be less and thus the price will increase and hence demand will increase....
Rohit Dewangan
2 years ago
demand will decrease*
Sir I could not understand how did the two individual demand curves add up to the market demand curve? Also isn't 5+4 the price of the good n not the quantity of the goods as against to shown on x axis in the market demand curve?
Normal goods = income increased - quantity demanded increased. income decreased - quantity demanded decreased. e.g. - ice cream, recreational activities etc. inferior goods = income increased - quantity demanded decreased. income decreased - quantity demanded increased. best example - sasta saaman such as cheap cars (3rd hand), if my income increases the quantity demanded of cheap cars decreases because now I can afford experience cars. similarly if my salary decreases the quantity demanded for cheap cars increases as I cant afford the expensive ones. hope it's clear now.
gud1
gud1
can anyone pls explain how do we get that 9 on the quantity axis on that above market demand curve
  1. INTRODUCTION TO INDIAN ECONOMY 1.5 CONCEPT OF DEMAND PRESENTED BY AYUSSH SANGHI


  2. ABOUT ME Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. MARKET DEMAND VERSUS INDIVIDUAL DEMAND o Looking at the diagrams in the last lesson, he demand curve shows an individual's demand for a product. To analyze how markets work, we need t determine the market demand, the sum of all the individual demands for a particular good or service.


  4. MARKET DEMAND VERSUS INDIVIDUAL DEMAND The graph in Figure 2 shows the demand curve for Consumer 1&2. We have to sum the individual demand curves horizontally to obtain the market demand curves. That is, to find the total quantity demanded at any price, we add the individual quantities found on the horizontal axis of the individual demand curves.


  5. MARKET DEMAND CURVE Figure 2 Demand Curve for Consumer I Market Demand Demand Curveuve (D+D2) urve (D1+D2) for Consumer II D1 D2 0 2 3 45 0 2 3 4 5 6 7 8 9 Output


  6. MARKET DEMAND CURVE The market demand curve shows how the quantity demanded of a good varies as the price of the good varies, while all the factors that affect how much consumers want to buy are held constant


  7. SHIFT IN THE DEMAND CURVE o The demand curve for ice cream shows how much ice cream people buy at any given price, holding constant the many other factors beyond price that influence consumers' buying decision


  8. SHIFT IN THE DEMAND CURVE P 2 e2 P 1 el D2 D1


  9. SHIFT IN THE DEMAND CURVE As a result, this demand curve need not be stable over time. Any change that increases the quantity demanded at every price shifts the demand curve to the right and is called an increase in demand. Any change that reduces the quantity demanded at every price shifts the demand curve to the left and is called a decrease in demand


  10. VARIABLES AFFECTING SHIFT IN DEMAND CURVE oIncome: In order to understand the effect of an increase or decrease in income we first need to distinguish between normal goods and inferior goods.