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0:00
What's up everyone, welcome back to the channel. Today we have come to day 6 of our 100 days commerce pro series. And in this series, in 100 days, we will complete all the syllabus of accounts, business studies and economics. So let's start quickly. Today we are going to start a new chapter which is demand. And this chapter will end in 2 classes. In this series, we will not take any chapter more than 2 classes. We will complete every chapter in maximum 2 or 1 shot.
0:31
Before this, there is another chapter in consumer equilibrium. But we will do that after demand. Because demand is coming in many children's syllabus. Consumer is also coming but let's demand first. Then we will do consumer equilibrium. Let's start quickly.
0:59
So let's start with the topic. What is the name of the topic? Demand. Now see what is demand?
1:06
First of all, understand that we are going to read many chapters in this unit. Like demand, consumers, equilibrium, elasticity of demand. So all the chapters we will read, all these will be read from the point of view of a consumer. Sir, who is a consumer? Consumer is such an individual who consumes goods and services.
1:26
Who goes to the market, buys goods, buys services. So such an individual who is going to the market and buying goods and services. He is giving money in return, of course. So he is a consumer. Now when that consumer goes to the market and says that I am willing as well as I am able. I am willing, I also want to buy something. And I also have money in my pocket, I also have ability. So both things are needed. I feel like buying a car. See now I will buy Mercedes. I have 200 rupees in my pocket.
1:56
From where will I buy Mercedes? So there is willingness, there is no ability. I want both things. Now I have 2 crores in my pocket. I am saying that I don't want to buy Mercedes. I don't want Mercedes. So willingness, ability. When a consumer shows both, then we say that he is demanding. So what is demand? The quantity of a commodity. Commodity became Mercedes. Quantity became one. Now I can ask for 2 also, I can ask for 3 also. What is there in that?
2:21
So demand refers to the quantity of a commodity which is a consumer. I am a consumer. I am willing as well as I am able. I am willing as well as I also have ability. I also have ability. At each possible price during a given period of time. Simple. So what will be the demand? Which a consumer is showing willingness by going to the market. He is also showing ability. And he wants that thing. That is demand. Okay. Now it is clear. Now see.
2:49
Demand can be for an individual as well as for an entire market. Means when I talk about a consumer. Now I went alone to buy Mercedes. So that will be called individual demand.
3:02
If I add all the consumers. That all the people in the whole market have come to buy Mercedes. So it will become market demand. So there is a basic difference. Rest the definition is the same. What do we consider in individual demand?
3:18
A consumer.
3:20
And in market demand. All the consumers. There is only this much difference. If we are talking about a consumer. Then individual demand. All the consumers who want to buy. Then market demand. There is no other difference in it. Okay. Sir, this is also understood. Now determinants of individual demand is coming. Determinants means children. Factors affecting. The factors due to which the demand will be less or more. Or there will be a change. Right. So it comes in the exam.
3:48
Saudhan India question is there. Write Saudhan India question with you. What are the factors that influence the demand to be less or more?
3:56
First of all is the price of the given commodity. Brothers are Indians. Indians are. First of all we will see how much is the thing. If BMW is studying cheaper than Mercedes. Then we will run towards BMW.
4:07
We rely a lot on price. We rely a lot on it. So the first factor that impacts demand. That is the price of the given commodity. So what is it? The most important factor affecting demand is its price. How much will it cost? Generally. In price and quantity demanded. There is an inverse relationship. If something is expensive. Then we will take less. If it is cheap. Then we will take more. So price and quantity demanded. Will run in reverse of each other. Now I told you the inverse relationship.
4:37
Even in PPC. That one is increasing. The other is decreasing. Price is increasing. Demand will decrease. Price will decrease. Demand will increase. So we get to see the inverse relationship.
4:46
So the first factor is the price.
4:49
The second factor is the price of related goods. Sir, what does related mean? Related means kids. Related goods. Related means.
5:00
Related goods. First of all is the substitute good. Second is the complementary good. Sir, what does substitute mean? Substitute means. Which can be used in place of each other.
5:13
Like for example. I have these two pens. One is black. Of one company. One is blue. Of another company. So if this black pen gets spoiled. Then I will use blue. If blue gets spoiled. I will use black. Substitutes of each other. Done or not done? If I have to go out somewhere.
5:32
I am going wearing jeans. I don't have jeans available. There is some other trouser lying. So I will wear a trouser. There is no trouser. I will wear jeans. I am looking good in both.
5:41
Substitutes of each other. So what are substitutes? The goods which can be used in place of one another. There is a guest at my house. Let me serve tea. There is no tea. Let me serve coffee.
5:51
Substitutes of each other. So now how does this impact? So see. Suppose that my good is tea.
5:59
Okay. Now what is the name of the concept? Price of related good. So price of coffee. If this becomes less.
6:10
If this becomes less. Then I will reduce the demand for tea.
6:16
Because I will run and go for coffee. If coffee is cheap, then I will serve coffee. It's a simple thing. If the price of coffee increases there. Coffee becomes expensive. Will coffee people also come for tea? Then the demand for tea will increase. So basically what we have to show. We have to compare the demand of our goods. Price of related goods. So if I see my substitute. My good is tea. I will compare the price of coffee. If the price of coffee is increasing.
6:48
Then coffee people will also come for tea. The demand for tea will increase. And if the price of coffee is decreasing. Then tea people will also run for coffee. So what can we say here? Here we can say that.
7:05
The price of substitute good.
7:12
Price of substitute good. That is the price of coffee.
7:17
If it increases. Then the demand for my good also increases. Because people will leave coffee and go for tea. And if the price of coffee decreases there. Then the demand for tea also decreases. Because people will leave tea and come for coffee. So we get to see the direct relationship.
7:35
Price of substitute good.
7:38
And demand of given good. Now this is done with substitutes. Substitutes are those that can be used in the place of each other.
7:46
What is the second one? Complimentary goods. Complimentary are those that compliment each other. Which run with each other. So complimentary goods are. For example. I have a car. And its complimentary is petrol. That they will run with each other. If there is a car, there is no petrol. If there is petrol, there is no car. What will you do? Both will run together. So now if the price of complimentary good.
8:12
If the price of petrol increases. Then the demand for the car will decrease. And if the price of petrol decreases. If it becomes cheap. So many people are not buying because of petrol. Now started buying. So here you get to see the inverse relationship. In which? Price of complimentary good. And demand of given good. So demand is to be taken always. You have to take the price of related good. Now that related good can also be substitute. Related good can also be complimentary goods. Understood.
8:40
Just take care of substitute good. Substitute goods are used in the place of each other. Complimentary run with each other. Okay. If you want to take a screenshot of this, then take it. In substitute, you get to see the direct relationship. In complimentary, inverse.
8:54
These are the goods which can be used in place of one another. These are the goods which are used together. Okay. Increase in price of substitute good. If the price of substitute increases. Substitute is expensive. Then my demand will increase. Right. Leads to increase in demand for given commodity. Right. And what is here? Increase in price of complimentary good. Petrol is expensive. Then demand of car will decrease. What is going on here? Leads to decrease in demand for given commodity.
9:22
Perfect. Right. So in this way, you will write the price of related goods. So first of all, what will the demand impact? My own price. Second, my price of related goods. Third, income of the consumer. Income is simple.
9:38
If my income is increasing.
9:42
Then I will demand for a normal good more. That my income has increased. Now I will buy more things. If my income is decreasing. Then I will buy less things.
9:52
So income and normal good. What is normal good? Which we use normally. Okay. So like you can take any good. Like clothes. Which is normal good for me. So if my income increases. Then I will buy more. If income decreases. Then I will buy less. But there are some goods. Which are very cheap goods. Which are very cheap goods. Like matches. For example, match box. Now if my income increases. Then will I buy a match box at home. It is not like that. So even if income increases.
10:19
Their demand remains less. Right. So such things. We call them inferior goods. So if there is an inferior good. So if income increases. Then we buy them less. That it is cheap. We will buy a little better one. Okay. And what happens in normal good? If income increases. Then demand also increases. If income decreases. Then demand also decreases. So what do we call this? Income of the consumer. So there are three pointers. Price of the given commodity. Price of related goods.
10:43
Income of the consumer. Now in income. You will write two pointers. For normal good. Direct relation. If income increases. Then demand also increases. If income decreases. Then demand also decreases. For cheap goods. If income increases. Then we will not buy. We will say. My income is more. I will buy a good one. So if income increases. Then the demand of inferior becomes less. Okay. So make two pointers in this.
11:02
What comes fourth? Taste and preferences. This is simple. Anything will come in my taste. I will like it. So if it is expensive. Then I will take. If it is in my taste. Then demand is more. If it is out of my taste. Then demand is less. I used to like something very much. My fashion. Custom. If there is something in my habit. Then I will demand more. When it will go out of my taste.
11:24
Then I will reduce the demand. Fifth comes. Expectation of change in price in future. Expectation. I have hope. Change will happen. Price. In future. That if in future. The price is going to increase. I feel that the price of the shirt. Will increase in the future. It will become expensive. I will buy it today. Because in future. Will increase in the future. Today I will increase the demand. If it felt. The price is going to fall in the future. It will be cheap. Then I will buy it.
11:50
I don't take it today. Today I will reduce the demand. So what is the price in the future. Its expectation. If you feel. It will become expensive in the future. So today we will increase the demand. It will become cheap in the future. So today we will reduce the demand. We have to write this in this. Price of a certain commodity. Is expected to increase in future. So people will buy more. Okay. So we have this. The third point. Expectation of change in price.
12:16
Then we have a small topic. What is that sir. Change in quantity demanded. And change in demand. You don't have to take much tension in this. Change in quantity demanded. We say when the demand changes. Because of the price. Just keep this much in mind. Change in demand. When do we say. When the demand changes. Because of any other factor. Sir other factor means. Means. Price of related goods. Income of the consumer. Taste and preferences. You have read all these factors.
12:41
They are called other factors. Price is an individual factor. The rest are all other factors. So if ever the demand is changing. Because of the price. What will you say. Quantity demanded. If it is happening because of other factors. Demand. Okay. Let's go brother.
12:58
Now what are the determinants of market demand. Children in market demand. Although all go. What you have written individually. They also go. But still we have something like this. Which only runs in the market. Like size and composition of population. Population which is more in the country. India. Most population in the whole world.
13:16
There the demand will always be more. The country whose population is less. There the demand will also be less. Season and weather. When the season of something comes. Like these half sleeves shirts. They have a demand because it is the season. Who is buying them in winter. No one will buy. So the demand will be less. Jackets will be sold in winter. Nowadays no one is buying jackets. So there is a difference in demand even from the season. What kind of product you are selling. If it is seasonal.
13:39
Suppose I sell AC. So nowadays their demand will be good. Now I sell heater. So nowadays their demand is not there. So there is a difference even from the season. Distribution of income. How is the distribution of income in our country? Is it equal distribution or unequal distribution? Unequal distribution means. That a limited population is rich. Rest majority of the population is poor. So there is unequal distribution in rich and poor. So here the demand is very much skewed.
14:07
Skewed means up and down. In a country where there is equal distribution. There the demand is always constant. It is good. It is a healthy demand. Understood. So see what is written. Income in the country is equitable distributed. Then market demand will be more. If it is uneven. Then either people will be very rich or very poor. Then the market demand will be up and down. Okay.
14:28
After this comes demand function. Sir what is this demand function? This function word you will read in many places in economics. Demand function. Production function. Revenue function. So wherever you read function. Function means that it will discuss the relationship between any two things. That how is this changing with this. So what does demand function show? Relationship between quantity demanded and the factor influencing it. That demand is changing.
14:58
And because of which factor is it changing? Like I said because of price how much change is there in demand. Because of price of related goods how much change is there in demand. Because of income how much change is there in demand. So I will call this demand function. That demand is changing with respect to various factors. Okay.
15:16
Sir how will we express demand function? So see individual demand function refers to relationship between individual demand. And all the factors that impact it. Like we wrote Dx. Dx means this x is a commodity. This x is a commodity. Demand of x. Functional relationship. F means functional relationship which is changing. With price of x. With price of related goods. With income. With taste and preferences. With future expectations. So we write like this. Demand for x. Price of x.
15:47
Price of related goods. Income. Taste and preferences. Future expectations. Okay. This demand function is done. It is not very important. Normally it is not asked. It should be known. Okay. Let's go sir. Sir what will happen in market demand function? Write all the factors. What will happen in market demand? Functional relationship between market demand and the factors affecting it. So all these factors come in the market. Price of the given commodity. Related goods. Income.
16:10
Taste and preferences. Future expectations. Size and composition of population. Season. Weather. Distribution of income. All come in the market. Okay. Take a screenshot of this too.
16:20
Well done. Sir tell about demand schedule. What is this demand schedule? Now son I will make you do two topics. Demand schedule. Demand curve. Okay. We have to understand the demand. Now you must have understood one thing. That the demand of the consumer. It is mainly impacted by the price. Yes it is also impacted by other factors. But price is the main factor. Right. Now see what I am saying. When the price is 10 rupees. So demand for example is of 100 units. Okay. Price has become less.
16:52
It has become 5. So demand will increase. Demand has become 200. Price has become less. So demand has increased. It has become 100 to 200. Is it done or not? Right. So now have I made a curve? Or have I made a table?
17:05
Have you made a table children? If you have made a table. Then we will call it demand schedule. End of discussion. So sir what is demand schedule?
17:13
Tabular presentation. In which we discuss relationship of price and demand. Relationship between price and quantity demanded. When we are seeing in a tabular presentation. What will we call that child? Demand schedule. Sir if we make a curve of this. Then how will it become? See now how does the curve become?
17:33
You have made a lot of curves in childhood. X origin Y. Here we take price 5 and 10. We take quantity 100 and 200.
17:44
Now see if price is 10. Then demand is 100.
17:48
Price is 10. So demand is 100. As soon as price became less. It became 10 to 5. So demand increased from 100 to 200.
18:02
So we have this. See our demand curve. So this is demand schedule. This is demand curve. So in both you understood. Whenever I am doing a tabular presentation. Of price and quantity demanded. We will call it demand schedule. When I will do a graphical presentation. I will make a graph of this. So what will this become? Demand curve. Now see here. I just talked about the demand of one consumer.
18:29
What happens in individual demand? A single consumer. What happens in market demand? All the consumers. So if I take two consumers instead of one. Price is 10. Then it became 5. X which was demanding. It was doing 100 to 200. And Y which is demanding.
18:48
It is doing 150 to 250. It became like this.
18:53
One consumer is X. One consumer is Y. So what will be the market demand? How to calculate market demand? Combine both. 150 plus 100. 250. 250 plus 200.
19:05
450. So if I have to show now. If I have to make its curve now. So see when we will make now. When I made the table. So this market demand became schedule. When I will make its curve.
19:20
How much price should I take? 5 10. 5 10. I took this price.
19:28
Quantity I have to go up to 450.
19:36
First we will make X's curve.
19:39
Price is 10. So demand is 100.
19:44
So this is done.
19:46
Price became 5. So demand became 200.
19:50
Take this. Whose demand curve is this? This is demand curve for X. This is done for X.
19:58
Now let's make Y's curve. 150 at 10.
20:06
150 at 10 will be in the middle here. So this is done.
20:11
And 250 at 5.
20:14
250 at 5 will be here. So we have this curve. This demand for Y became. Became. Now see this is individual. X's and Y's. Now when I will make market.
20:27
So what is market?
20:30
250 at 10.
20:33
250 at 10. So this will be the point.
20:38
And 450 at 5.
20:41
This will be the point.
20:44
So this will be something like this. This will be the market demand. Now if you look carefully. So the curves of individual demand are a little steep. Like this. And market demand is a little flat. See market demand is a little flat. So always keep in mind. Market demand curve is always flatter than individual demand curve. The market demand curve will always be flatter than individual demand curve. Is there any reason or logic behind this? Yes. See here the change is 100 to 200.
21:23
What is the change of 100? Here the change is 150 to 250. What is the change of 100? See the change here. Straight change of 200. So whenever the proportionate change will be more. Then the curve will be flat. Just keep this in mind. Okay. So individual demand is a little steep. Market demand is a little flat. Whenever you are making a table. You are doing tabular presentation. Of individual or market. That is demand schedule. When you make graphical presentation curve from it.
21:51
So what are you making? Demand curve. Understood. Come on sir. Take a screenshot of this. Then let's see how it is in books and what is written.
21:59
Demand schedule. Tabular statement. Showing various quantities being demanded at various level of price. During a given period of time. This shows the relation between price and quantity demanded. In the form of a table.
22:13
So this became demand schedule. Great sir. Understood. There will be two types of individual. Which will show in respect of one consumer. See price. And quantity demanded of commodity x. Okay. And when we will talk about market. Then household will be of A. Household will be of B. Combine both. Then what will become? Market demand schedule will become. Is it right? Okay sir. Then what will be demand curve? We will make a graph of it. Graphical representation of demand schedule.
22:43
Whenever I will convert schedule into curve. Demand will become curve. It is the locus of all the points. Showing various quantities that a consumer is willing to buy. At different levels of price. During a period of time.
22:56
Okay sir. Demand curve will also be of two types. Individual. Which will be of individual schedule. That is individual demand curve. And which will be of market. That is market demand curve. See you can see the curve here also. This is a little steep. This is a little flat. Market demand curve will always be flat.
23:14
Slope of demand curve. Children if you have to tell the slope of demand curve. Then keep in mind. Change in price upon change in quantity demanded. In 101 mark I can ask you. What is the slope of demand curve?
23:24
So change in price divided by change in quantity.
23:28
See sir.
23:31
Slope is done. How much change is coming. That is told to you. After this law of demand will come. We will study this in next class. Now one reason which can ask you. He can ask this only. That why market demand curve is flatter. I told you that. Because the proportionate change in market demand. It is always greater than proportionate change in individual demand. Keep this in mind. Okay. So guys. This was our today's topics. We studied demand. We studied factors of demand. Which affect it.
23:57
Individual demand. Market demand. Then demand schedule. Individual and market. Then demand curve. Individual and market. Revise it so well today. Whichever book you have put in your school. Read it once. And learn the topic also. So that when we complete in next class. Then everything will end very well. Right. Thank you so much guys for joining in. I hope you understood everything very well. I explain in simple language. So there will be a lot of clarity. And after this we will move ahead.
24:28
And will complete things in 100 days.
24:31
Thank you so much. Keep glowing and keep growing.
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