This document discusses types of demand and the law of demand in managerial economics. It covers different types of demand including price, income, cross, direct, indirect, joint, composite, alternative, individual, and market demand. It then explains the law of demand, which states that quantity demanded increases when price decreases and decreases when price increases, representing an inverse relationship between price and demand. The document lists assumptions of the law of demand, including constant tastes, income, customs, lack of substitutes or price changes, and unchanged consumer habits.

1. MANAGERIAL ECONOMICS

2. TOPIC COVERED
• TYPES OF DEMAND
• LAW OF DEMAND

4. TYPES OF DEMAND
PRICE
INCOME
CROSS
DIRECT
INDIRECT
JOINT
COMPOSITE
AITERNATIVE
INDIVIDUAL
MARKET
TYPES OF
DEMAND

7. LAW OF DEMAND
• The law of demand expresses a relationship
between the quantity demanded and its price.
• It may be defined in Marshall’s words as “the
amount demanded increases with a fall in price,
and diminishes with a rise in price”
• Thus it expresses an inverse relation between
price and demand. The law refers to the direction
in which quantity demanded changes with a
change in price

10. Assumptions of the Law of Demand:
• (i) There is no change in the tastes and preferences of the consumer
• (ii) The income of the consumer remains constant
• (iii) There is no change in customs
• (iv) The commodity to be used should not confer distinction on the
consumer;
• (v) There should not be any substitutes of the commodity;
• (vi) There should not be any change in the prices of other products;
• (vii) There should not be any possibility of change in the price of the
product being used. (viii) There should not be any change in the
quality of the product; and
• (ix) The habits of the consumers should remain unchanged. Given
these conditions, the law of demand operates. If there is change
even in one of these conditions, it will stop operating.

11. i)X axis- quantity demanded
ii)Y axis – Price of the product
Demand Schedule is the list of
price and the quantity demanded
of a particular product. It is
graphical representation called
demand curve.
The demand curve slope
downwards from left to right
because of higher price