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INDEX
What is demand What is supply What is equilibrium Exception of demand and supply Income Elasticity of demand Garment industries in India
Demand
DEMAND
Quantity of goods and services that people are ready to buy at various prices within same period of time.
LAW
OF DEMAND
Industries follow the law of demand and demand increases on seasonal clothes.
Demand curve
SUPPLY
SUPPLY Quantity of goods and services that people are ready to sell at various prices within same period of time
Law
of supply
Supply curve
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
Giffen goods
Giffen good is one which people paradoxically consume more of as the price rises, violating the law of demand. In normal situations, as the price of a good rises, the substitution effect causes consumers to purchase less of it and more of substitute goods. In the Giffen good situation the income effect dominates, leading people to buy more of the good, even as its price rises.
Veblen goods
Veblen goods are a group of commodities for which people's preference for buying them increases as their price increases, as greater price confers greater status, instead of decreasing according to the law of demand. A Veblen good is often also a positional good.
Garment industry follow the income elasticity of demand people prefer to buy garments according to their income.
NORMAL GOODS
INFERIOR GOODS
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.
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