Consumer Demand Theory

Quantity of a commodity a consumer is willing to buy at different prices

Demand function

factors effecting demand

• Price of the commodity itself
• Price of related goods
• Income of consumer
• Taste of consumer

law of demand

Change in demand vs. Change in quantity demanded

extension and contraction

Increase and decrease

normal goods vs Giffen goods

• Normal goods : Positive income effect
• Giffen goods : Negative income effect

Elasticity