Learn with steem|| The theory of Demand by @beetees|| burnsteem25 @null

Hello steemians,

I trust your day is going well as supposed, well, mine is being stressful. I have a lot to cover with my student at school and I have been trying my best to do that before exam starts in two weeks time.

Having much work to do at school wouldn't stop me from educating my friends here on the steemit block chain.

Today I will be teaching on THE THEORY DEMAND OF GOODS AND SERVICES.

Image was designed with canva

At the end of this post, the student should be able to know this;

• Meaning of Demand
• Law of Demand
• Demand schedule
• Demand curve
• Factors that affects demand

---

MEANING OF DEMAND

This is the total quantity of goods or commodity a consumer is willing and able to purchase or buy at a given price at a certain period of time.

When the consumer has the desire to purchase a commodity and backs it up with the willingness and ability to pay for the goods, it becomes Effective demand.

Firstly, the consumer must have a desire for the goods, then the willingness to purchase and finally the ability to pay for the goods. When a consumer only has desire for the goods and does not back it up with the willingness and ability to pay for the goods, it becomes just want or need.

For instance, if Mr @whitestallion has the money to purchase STEEM and is able to pay for it, then he has effective demand for the STEEM, He therefore demands the STEEM. But if @beckie96830 desires to purchase STEEM and does not have the money to pay for it, she just wants or needs the STEEM and has no effective demand for it.

---

LAW OF DEMAND

The law of demand is same any where and hasn't changed since my secondary school days.

"It states that all things being the same, the higher the prices of goods, the lower the quantity demanded and the lower the prices of goods, the higher the quantity demanded".

This means that when the price of a commodity is high, people demand for less quantity.

For instance, when the price of minimie chinchin is high in the market, the quantity demanded will reduce.

Note that this law will stand when the following things are constant:

1. The income of the consumer.
2. The taste of the consumer.
3. The quality of the product.
4. The behaviour habit of the consumer.
5. There isn't any same competitive product in the market.

---

DEMAND SCHEDULE

This is the relationship between the price of goods and quantity demanded at a certain of time. It is related in a table, with the different amount of goods demanded at a given price for a period of time.

The table below shows @focusnow demand schedule for steem per month

Price per steem (naira)	quantity of steem demanded
200	5
150	8
100	10
85	15

The demand schedule above shows the relationship between the various prices of steem and the quantity which @focusnow is willing and able to buy at each price per month.

  200 |*
  150 |  *
  100 |   *
  85  |       *
      |______________
       5  10  15  20

This is the graphical presentation of the demand schedule. When the asterisk are joined together with a line, it is the demand curve.

Demand curve is a graph showing the relationship between the price and quantity of goods demanded at a certain period. A demand curve has a downward slope.

---

FACTORS THAT AFFECTS DEMAND

The following are factors that either increases or decreases the demand of goods and services at a certain period:

• Price
• Weather
• Income of a consumer
• Change in taste of a consumer
• The Price of other commodities
• Fashion
• Festive period
• Introduction of a new commodity
• Population
• Advertisement
• Government policy

I will go futher to explain the most important 5 factors that affects demand against all odds

• Price: Price is one of the major factors that affects demand. When the prices of commodities go up, people do not purchase much, the demand becomes low.

• Weather: During some certain climate and weather conditions, the demand of some goods in the market either increases or decreases. For example, the demand for umbrella, rain coat, rain boots and everything that has to do with prevention from rain increases during the rainy season.

• Government policy: The Lagos State government in Nigerian recently placed a ban on motorcycle operating on the high way and some areas in the state. He passed a directive that any motorcycle seen in these areas should be seized and destroyed.

This affected the sale of motorcycles, motorcycle parts and also affected the demand for bus now by increasing it's demand by passengers on daily basis.

• Price of other commodities: When a substitute commodity is sold at a cheaper rate, a consumer will demand for the commodity with the lesser price, causing an increase in the demand of the commodity and a decrease in the demand of the other commodity with the higher price. For instance, close up toothpaste is sold at #350 and oral b is sold at #500, a consumer who doesn't have preference will rather go for the cheaper toothpaste as long as it can serve same purpose.

• Festive period: When the demand of commodity is affected by festive period like Christmas, Easter, ramathan celebration etc.

---

CONCLUSION

The demand of goods and services can not be met without supply. Effective demand can only be complete when there is a supply if the goods demanded. Therefore, we will treat the theory of supply in the next lesson.

Thanks for visiting my blog

Beetees 💓