· DEMAND
We can state demand in
simple way, demand is nothing but its desire, wants and ability to purchase a
good or hire service.
DETERMINANTES OF DEMAND
Meaning of determinate is simple way
is having the power or quantity of deciding. So, there is five determinants of demand:
-
·
Price of the
goods/services
·
Price of related
goods/services
·
Consumer Income
·
Testes
·
Preferences
LAW OF DEMAND
The law f demand state that
inverse relationship between price and quantity demanded at the given time of
period.
In simple language we can say
that when the price of goods rises people buys less of that goods. When the price
fall people buy more of it with other things remaining same.
Graph image Link references :-
https://www.google.co.in/url?sa=i&source=imgres&cd=&cad=rja&uact=8&ved=2ahUKEwjny5-NieXcAhVIWysKHZBEB9IQjRx6BAgBEAU&url=http%3A%2F%2Ffutures.tradingcharts.com%2Flearning%2Flaw_of_demand.html&psig=AOvVaw0Z3OlrhoByHYMUfRYJZcrv&ust=1534079362390032.
EXAMPLES:-
1)Day
before yesterday I went to buy a my
regular face wash i.e GARNIER MEN FACE
WASH of ₹ 80 for 200 gm tube, but I choose another substitute product i.e Ponds
Men Face Wash because its price was cheaper than garnier men face wash price
was hiked by ₹89 per 200 gm per tube and pond s men face wash was of ₹ 80 for
200 gm per tube…..
(here i
experienced law of demand because I choose ponds face wash rather than garnier
because that was best alternate good for me within same price in my range of price).
2)
Last month I went for shopping to buy shirts for me in D mart shopping mall…
and where I found that lots of shirt with different brands were available
there, but I wanted to buy a my fav shirt of fav brand i.e LEVIS..
but the cost was out of my budget and prefer the first copy of brand
within my range and I bought the shirts…
Levis original price was ;- Rs 1800/-
Levis copy price was ;- Rs 1000/-
(her I experienced the the law of demand
because I choose the best goods according my budget).
· INFERIOR GOODS
Inferior
goods are those goods when the income of the consumer increases and the demand
of the good and services decreases according to their needs and satisfaction.
Consumption of inferior goods are inversely related to or get affected
by the consumer incomes.
Reference to
image :-
https://www.google.co.in/url?sa=i&source=images&cd=&ved=2ahUKEwjm-IPzseXcAhXGTX0KHdxXAk0QjRx6BAgBEAU&url=http%3A%2F%2Fwww.knowledgiate.com%2Fincome-demand-curve%2F&psig=AOvVaw35Y4vNW1y6sWnApgxtBMaV&ust=1534090280292065
Examples: -
1.
Recently I was using the mobile phone worth
rupees 1000/- i.e Samsung guru single slot sim. When my father got promotion and
his salary was raised then he gifted me the new brand phone of vivo worth
rupees 12,000/-.
2.
When I was using the that old Samsung guru
phone with no facility or service of internet, my recharge price for one month
was rs 99 /- now I got new vivo phone which has 4g internet facility my
recharge of internet service is rs 199 for a month.
(from
above example 1&2 I experienced that when my father income was raised I
change my inferior i.e Samsung guru and choose vivo then I also found the
increase of my recharge services according to my needs)
SUPERIOR GOODS
Superior goods are those goods as income rises
of a consumer the demand of superior goods will also increases or consumption of inferior goods which was previously consumed by the consumer will change or
move to next best and higher level of consumption's of that goods.
· Superior goods have two characteristics:-
1. Must be scarce in nature
2. Must be
high in price
IMAGE REFRENCE: -https://www.google.co.in/imgres?imgurl=https%3A%2F%2Fqph.fs.quoracdn.net%2Fmain-qimg-17c5e9abdf85a3b63e448aeccea7d35d-c&imgrefurl=https%3A%2F%2Fwww.quora.com%2FHow-do-changes-in-income-affect-the-demand-for-a-good&docid=W_ejMK4adZoiRM&tbnid=UoKxMp-tmGDlfM%3A&vet=10ahUKEwjhvreZu-XcAhUlTo8KHckUDU4QMwh0KCwwLA..i&w=303&h=254&bih=613&biw=1366&q=superior%20goods%20definition&ved=0ahUKEwjhvreZu-XcAhUlTo8KHckUDU4QMwh0KCwwLA&iact=mrc&uact=8
EXAMPLES; -
1.
Last DIWALI festival my father got Diwali
bonus from his office and he bought new GOLD necklace for my mother before that
gold necklace, my mother used to wear a silver necklace.
2.
My uncle is business man he has transport
business all over the state of West Bengal [shree Balaji traders and transport]
he used to ride the Honda city car. After when he started transporting the good
beyond the west Bengal territory his business expanded and now he bought
luxurious car i.e AUDI Q3 which is superior than the Honda city car…
(from
example one and two I feel the substitution of inferior goods over the superior
goods i.e my mother replaces the silver necklace to Gold necklace as my father
income hike up then from example two my uncle chooses luxury car over the
inferior goods, his previous car as expansion of his business and increase in
income,)
COMPLIMENTARY GOODS
Complimentary Goods are those as name suggested that which
compliments each other or interrelated to each other or dependent to each other,
or we can say that a goods demand is increase when the price of another goods
is decreases.
EXAMPLES;-
1.
In class
x in 2010 I was riding bicycle when I passed out class tenth my father bought
me a new motorcycle because on that time the petrol was in Odisha/Bhubaneswar
was rs 61.47 p/l and and demand of that
bike was high because it was newly launched i.e hero Honda impulse and we found
that price of that bike was too high comparability today's price.
2.
In our home the we are the user of DTH service
of Tata sky hd … when the Indian govt IBF ordered all the cable operators to
provide dth box rather than the cable connections in home and then the demand
of DTH services was high on same time the the price of tvs are bought down.
(from
example one and two we can conclude that the complimentary goods are
interrelated to each other when the price of petrol was decreased the hike in
the price of the bike was increases. And same with the dth services and the tv)
SUBSTITUTION GOODS
As the
name suggested that substitute goods are those goods which can be replaced with
another good with same satisfaction and same wants in another words we can
explain that if a good demand is increased when the price of another goods
increases.
EXAMPLE ;-
1. In Odisha 2013 it was the time of during rainy season
in September the cyclone hits the whole ODISHA named PHYLINE and whole Odisha
bear the great loss as effect of this natural calamity we always consumed the
rice which is worth of ₹40 per kg plain basmati rice but unavailability due to
cyclone its price was hiked to ₹55 per kg and we have to substitute that rice
with local bolide rice worth rupees of ₹35 per kg.
2. During that
cyclone period the price of gas cylinder was also hiked due to black marketing
and unavailability of transport so people substitute the gas cylinder with
kerosene burner stove for prepare the foods for the certain time of period.
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