Demand is the quantity of a good that that the consumer is willing to buy at a price at a time.
1. Price of related goods, income and tastes of the consumer are the determinants of demand.
2. Law of demand states that other things remaining same, as the price of commodity increases, the quantity demanded by a consumer falls and vice-versa.
3. Demand curve slopes downwards because of operation of diminishing marginal utility, income effect and substitution effect.
4. Exceptions to the law of demand – conspicuous consumption, Giffen goods, Necessary goods, Expectations of future change in price.
5. Change in quantity demanded or Movement along the demand curve- whenever there is a change in the price of commodity, the quantity demanded of the commodity changes, other things remaining constant. .
6. Increase and decrease of demand: when demand changes not due to price but due to other factors like income, tastes & preferences then it is termed as change in demand.
