General Awareness play a vital role in all Examination. we can expect Questions from different Topics.In Banking and other competitive exams like RRB, CDS, LIC AO, RBI, SSC, UPSC, FCI, UIIC, OICL, SBI Clerks and PO the questions on Number of Players in Different sports games are being asked. Here we have given Study notes on ” Demand & Determinents of Demand ” for SSC CGL Examinations 2019-20 & other examination. Candidates those who are all preparing for the Examination can use this study material.
Demand plays a very important role in Business sectors. Because sales and profits of a business company depends upon its demand. A firm will not live without any demand of its goods in the market.Failure and success of a firm depends on demand of the goods. A firm will mobilise resource s based on the demand forecastings. Hence,business economists must study the demand and its related things.
DETERMINANTS OF DEMAND
Demand for a good depends upon various factors.
1. PRICE OF GOOD: Price of a good depends upon its demand. A change in price leads a change in demand of a good. The demand falls when the price rises and vice versa.
2. POPULATION: In generally,demand for a good depends upon population of a country, and number of consumers of that country. Demand is high when the population is high and the demand is low when the population is low.
3. INCOME AND WEALTH OF CONSUMERS: A goods decreased is based an income of the consumers. If the income changes the quantities puchased will also change.
4. TASTES AND HABITS OF CONSUMERS: Demand for a good is based on tastes and habits of the consumers. Demand will change if the tastes and habits of the consumer will change.
5. PRICES OF SUBSTITUTIONAL GOODS: Demand for a good depends upon its substitute goods. The demand is high if then are more substitutes. Moreover, the prices of its substitutises effect its demand. For example, price of coffee effects demand forTea. Demand for tee is high when the price of coffee is high.The demand for tea is low when the price of coffee is low.
6. COMPLEMENTARY GOODS: Complementary good is a related good. Demand for a good depends upon prices of its complementary goods. For example, demand socks depends upon prices of shoes.
DEMAND AND LAW OF DEMAND
In generally, the demand for a commodity in the amount bought. But in economic tenurs demand mean economic power of a commodity arises when the person has desire you it, and has the ability and willingness to pay for it. The other words, the demand for a commodity is the amount bought at a given price and at a point of time
A person desires to buy a car.This is his desire. However, the person has the ability to pay for it. But the person has not that ability. So, this is not demand in the same way, there is no demand for a car even though he is a millionas has not desire to purchase a car.Hence, we need two things to demand for a commodity. They are desire for it and ability to buy.
LAW OF DEMAND
The law of demand refers the relationship between price of a commodity and demand for it. The law shows, other things being equal “demand rises when the price falls and demand falls when the price rises”. Hence, there is inverse relationship between price and demand.
Demand functions are the factors that express the relationship between quantity demanded for a commodity and price of the commodity.
In a line you can say that factors that determines demand.
Basically demand functions are of two types:
- Individual demand functions
- Market demand functions.