Increase and decrease in demand
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.

Consumer demand
Q_{x} = f (P_{x} ,P_{an, }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_{an, }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

Last modified: Saturday, 2 June 2012, 7:41 AM