DEMAND FORECASTING Forecasting of demand is an art and science of predicting the probable demand for a product or service at some future date on the basis of certain past behaviour patterns of some related events and prevailing trends in the present. BASICS Forecast means to predict. So what is…
Table Of Contents:Exceptions to the law of demandConspicuous goodsGiffen goodsConspicuous necessitiesFuture expectations about pricesIncomplete information and irrational behaviourDemand for necessariesSpeculative goods Expansion and Contraction of demand Increase and Decrease in demand Effect of non-price determinants of demand Movements along the demand curve VS. shift of demand curve Exceptions to the law of demand: we…
CONTENTSRationale of the law of demand: Price effect of a fall in price: Utility maximizing behaviour of consumer: Arrival of new customers: Different uses: Rationale of the law of demand: We know that the demand curve slopes downwards. There is an inverse relationship between quantity demanded and its price. i.e,…
Table of Contents 1. Law of Demand 2. Demand Function 3. Individual Demand schedule with curve 4. Market Demand schedule with curve Law of demand: the law of demand is one of the most important laws of economic theory. It states the nature of the relationship between the quantity demanded…
Table Of Contents:Meaning of demand Determinants of demand Meaning of demand: The term demand refers to the quantity of goods or services that the buyers are willing or able to purchase at various prices during a given period of time. Consider following example: Your birthday is approaching, you want to go…