User:Smitashukla/consumer behaviour

 MICROECONOMICS
Demand is one of the most important decision making variables in present globalised, liberlised and privatized economy. Under such type of an economy consumers and producers have wide choice. There is full freedom to both that is buyers and sellers in the market. Therefore Demand reflects the size and pattern of the market. The future of a producer is depends upon the well analysed consumer’s demand. Even the firm dose not want to make profit as such but want to devote for ‘customer services’ or ‘social responsibilities’. That is also not possible without evaluating the consumer’s tastes, preferences, choice etc. All these things are directly built into the economic concept of demand.

The survival and the growth of any business enterprise depends  upon the proper analysis of demand for its product in the market. Demand analysis has profound significance to management for day today functioning and expansion of the business. Thus the short term and long term decisions of the management are depend upon the trends in demand for the product. Any rise or fall in demand for the product has to be to find out reasons and revised  production plans, technology or change in advertisement, packging, quality etc.

All other things are being constant if price of a commodity changes then the demand for that commodity also changes. Thus the price is the major determinant of demand

DEMAND FUNCTION Dx= f(Px) ^Px - ^Qdx Rise in Px -leads to --fall in Qdx -and vice-versa Fall in Pxrise in Qdx If Px is bar--Qdx bar There is inverse or opposite relationship between price and quantity demanded of a commodity.

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