1. DEMAND And SUPPLY and
Income elasticity of DEMAND
Of GARMENT
INDUSTRIES
IN INDIA
Vaibhav yadav
11llb064
section -B

2. INDEX
 What is demand
 What is supply
 What is equilibrium
 Exception of demand and supply Income Elasticity of
demand
 Garment industries in India

3. Demand
DEMAND
Quantity of goods and services that people are ready to buy at various prices
within same period of time.
LAW OF DEMAND
Whenever the price decrease
demand increases.
NON PRICE DETERMINENT
OF DEMAND
Taste and preferences, Income,
No. of buyers, Future expectation,
Price of related good
Garment Industries follow the law
of demand
and demand increases on seasonal Demand curve
clothes.

4. SUPPLY
SUPPLY
Quantity of goods and services that people are ready to sell at various
prices within same period of time
Law of supply
whenever the price decreases supply
increases.
NON PRICE DETERMINENT 
OF SUPPLY
Cost and technology, income of
customer, rise of substitute goods or
price of complimentary goods, future
expectations, no. of sellers, whether
conditions
Garment supply increases at the
starting new season . Supply curve

5. EQUILIBRIUM
The price that equate the quantity
demanded within the quantity
supplied
OR
It also defines as the price which
clear the condition of either surplus
or shortage.
IN EQUILIBRIUM the garment
industry is in a state in which
supply and demand is on constant
level.
Equilibrium curve

6. Exception
to the law of demand and supply
 Giffen goods  Veblen goods
 Giffen good is one which  Veblen goods are a group
people paradoxically consume of commodities for which
more of as the price rises, people's preference for buying
violating the law of demand. In them increases as their price
normal situations, as increases, as greater price
the price of a good rises, confers greater status, instead
the substitution effect causes of decreasing according to
consumers to purchase less of the law of demand. A Veblen
it and more of substitute good is often also a positional
goods. In the Giffen good good.
situation the income effect
dominates, leading people to
buy more of the good, even as
its price rises.

7. Income elasticity of demand
 Income elasticity of demand measures the
relationship between a change in quantity demanded
for good X and a change in real income.
 The formula for calculating income elasticity: %
change in demand divided by the % change in income
 Garment industry follow the income elasticity of
demand –people prefer to buy garments according to
their income.

8. Normal and inferior goods
ACCORDIND TO THE CONCEPT OF DEMAND
AND INCOME -THE GOODS ARE DIVIDED
INTO
NORMAL GOODS INFERIOR GOODS
 Demand increase with  Demand decrease with
increase in income decrease in income
Generally garments fall in the category of normal goods

9. Some of the leading Garment
industries of India
 Flying machine
 Cantabil
 Numer Uno
 Marks and Spencer
 KOUTONS
 LEVIS STRATUS
 All these garment industries follow the law of demand and supply
and follow the income elasticity of demand.
 Garment industries generally use the concept of SALE to increase
the sales of the garments.

10. THANK YOU