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THE CONCEPT OF DEMAND
CONTENT
- The Price System
- The Concept of Demand
- The Demand Schedule
- The Demand Curve
- The Law of Demand
- Factors Affecting Demand
The Price System
This refers to the mechanism by which prices of goods and services are determined by the forces of demand and Supply
Functions of Price System
- It determines the allocation of scarce resources: if resources become scarce, their prices will be high. Therefore only those who essentially need them will afford to buy them.
- It influences production pattern:through prices that consumers are willing to pay, suppliers are able to identify commodities that are in high demand and are able to adjust their production pattern. This is done to make high profits
The Concept of Demand
Demand may be defined as the quantity of a commodity which a consumer is willing and able to buy at a given price and at a particular period of time. In the ordinary meaning of demand, it is known as “want or desire”.
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ClassHall Instructor
Halima Ahmadu
Maryam