Increase In Demand

Prestige Institute of Management & Research Prepared By: Ankur Rathi & Rounak Mehta B.B.A 4th Sem Section – “A”

Guided By: Prof. Shine David Topic: Increase in

Demand • Demand for a commodity refers to the quantity of the commodity which an individual consumer is willing to purchase at a particular time and at a particular price. • The demand for a commodity implies – 1. desire of the consumer to buy the product, 2. his willingness to buy the product, and

Increase in Demand • When due to change in other factors, price remaining constant, demand for the commodity increases; it is termed as increase in demand. Pric e (in Rs.)

Demand (in units)

Causes of Increase in Demand Future expectation of price. Increase in income of the consumer of a normal good. Increase in price of substitute good.

Causes of Increase in Demand Fall in price of complimentary good. Favorable change in taste and preference of consumer. Fall in income of the consumer of the inferior good.