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Al- Rizq
Al-rizq is used to denote the following meanings;
- Godly sustenance, divine bestowal, godly provision
and heavenly gifts
All these meanings denote that Allah s.w.t is the only
sustainer and provider for all creatures.
Hierarchy of needs
Dharuriyah
Goods that are classified as basic needs and
necessary for a living.
Hajiyat
Goods that will improve the quality of human life
Kamaliat
Goods that contribute towards the perfection of
human life
Tarafiat
Goods that are consider extravagant and wasteful
DEMAND OF GOODS AND
SERVICES
Definition of demand
The quantity of various goods that
people are willing and able to buy at a
particular time and at a given range of
prices.
Quantity
Plotthe graft according to the data
given
The Individual Demand Curve and
the Law of Demand
RM 5.00 100 50
Determinant of Demand
Price of the goods
Price of related goods or complementary
goods
Consumers income
Taste and preference
The number of buyers in the market
Expectation about the future price
Weather
Availability of credit facilities
What happens when the
price increases for a good
that has a complement?
$15 A
B
$10
D
$5
Q
10 20 30 40 50
When something
changes other than
price, what happens?
The whole curve
shifts,there is a
change in demand
P
When the ceteris paribus assumption
is relaxed, the whole curve can shift
$20
A B
$15
$10 D
$5 D12
Q
10 20 30 40 50
A Change in Demand Versus a Change
in Quantity Demanded
To summarize:
Change in price of a good or service
leads to
Change in demand
(Shift of curve).
Inter related demand
1.Joint Demand
A demand for a particular good is likely to increase the demand for another
good.
Complementary goods
Pen and ink, toothbrush and toothpaste
2.Competitive Demand
An increase in the demand for one good will reduce the demand for another
good.
Substitutes goods
Pepsi cola and coca cola, KFC and McDonalds, PROTON and HONDA
3.Derived Demand
The demand for a good increases, demand for the factor of production to
produce goods will also increase.
House: bricks, cement, tiles etc
4.Composite Demand
Refer to multi purpose products
Rubber can be used to produce tires and shoes.
What is an
inferior good?
Any good for which
there is an inverse
relationship between
changes in income
and its demand curve
What is a normal
good?
Any good for which
there is a direct
relationship between
changes in income
and its demand curve
What does an inverse
relationship between price &
quantity mean?