The purpose of studying

economics is not to acquire a

set of ready-made answers to
economic questions, but to
avoid being deceived by
economists
- Joan Robinson

Demand
Demand is desire
backed by willingness
and ability to pay for the
commodity.

Determinants of Demand
Price of the commodity
Income of the consumer
Price of related goods (substitutes or
Complements)
Tastes and Preference of the Consumer.
Advertising
Future expectations
Population and economic growth.

Demand Curve for the Book

Q

P( in INR)

1
2
4
5
7
8
9
11
12

150,000
50,000
1500
1350
1000
800
475
400
199

Derivation of Market Demand

Schedule
Suppose Sony is giving an offer to IBS
students to purchase laptop at a
discounted price

Derivation of Individual
Demand Schedule & Market
Demand Schedule
Price
25000/20,000/15000/10000/-

C1

C2

C3

C4

Total

Activity-1
1. Given that an individual Consumers
Demand curve is P=200-4Q
a) Find the quantity this consumer would
purchase at a price of . Rs.20/b) Suppose that the price increases to
Rs.60/-, how much would the consumer
now purchas?

Activity 2
Consider the following three equations
representing three consumers demand
functions
Consumer 1: P=12-q1
Consumer 2: P=10-2q2
Consumer 3: P=10-q3
Note : quantities are to be added and not the
prices

Activity 3
Assume that there is a fruit seller who has 20
kg. of apples to be sold and he wants to fix a
price so that the apples are sold. There are
three customer in the market and their
individual demand functions are given as below:
Q1=25-1.0P, Q2=20-0.5P, Q3= 15-0.5P.
Determine the demand equation for the fruit
seller. And find out the price at which he can
sell all the apple.