Livestock Economics, Marketing and Business Management

INCREASE AND DECREASE IN DEMAND

• The consumer fixes his own demand and
• increases or decreases his demand not with respect to the price but to the factors other than price like income.It will shift the demand curve.
• Now, there will not be a movement along the old curve but along a new curve altogether. (Click here to view graph)

Consumer demand

• It refers to the quantity demanded for a good at a defined time period, in a defined geographical area, in a defined marketing environment by a particular consumer.
• The determinants of consumer demand can be expressed as follows.

Q_x = f (P_x ,P_a---n, Y, A_x, T…..) Where

• Q_x = the quantity of good 'X' demanded by the consumer
• P_x = The price of the good
• P_a….n = The price of the other related goods 'a' to 'n'
• Y = Income of the consumer
• A_x = Advertising expenditure on good
• T = Consumer tastes and
• … = other, unspecified, explanatory variables

Market demand

• Market demand reflects total sales of a product at a specific point of time.
• The determinants of market demand can be expressed as follows.

Q_x = f (P_x ,P_a---n, Y, A_x, T…..) Where

• Q_x = the quantity of good 'X' demanded by the market
• P_x = Price of the good
• P_a….n = Price of the other related goods 'a' to 'n'
• Y = Incomes of the consumers
• A_x = Advertising expenditure on good
• T = Consumer tastes and
• … = other, unspecified , explanatory variables