 consumers and market demand for agricultural products. It is the consumers that creates demand for agricultural products and as far as consumer demand is concerned, it is willingness and ability to buy against different prices. To elaborate the concept of the consumer demand, we used a table that depicts the price relationship between prices and quantities and we also use a graph to describe the relationship between price and quantities and that graph indicate a negative association between price and quantity and some mathematical form, some equation are also used to describe the demand consumers demand for some quantities. As far as demand curve is concerned, it is a negatively sloped curve, if price increases quantity demand will decrease and there is a negative association between price and quantity demand and this negative association, this inverse association between price and quantity is called as love demand and love demand can be explained in terms of substitution effect and income effect of a price change and to understand the concept of substitution effect and income effect, one should have understanding about the consumer behavior. When we say consumer behave, to describe the consumer behavior, we use the concept of indifference curve, budget constraint and consumers choice and difference curve shows different combinations of two commodities that gave same level of satisfaction to a particular consumer and an indifference map is a set of indifference curves, a higher indifference curve indicate a higher level of satisfaction and the constraint that consumer faces is in the form of budget line and the point where an indifference curve becomes tangent to a budget line, it basically indicate that particular combination of commodities where consumer is getting maximum satisfaction under his limited income. So, by using indifference curve and budget constraint, we can describe the consumers choice. In this diagram, we start by making an assumption a consumer is using only two commodities, food and all other commodities that a consumer is using we keep them under the other category of commodities. So, consumer is allocating all of his income on the purchase of food and other set of commodities and under given income constraint, this downward sloping line BL 1 denotes different combination of two commodities that a consumer can purchase. Against BL 1, IC 1 is an indifference curve that is tangent with BL 1 and consumer by choosing F 1 quantity of food can maximize his satisfaction under given budget constraint. Now, if we assume there is decrease in price of food while price of other commodities remain constant, there is no change in income of the household then budget line perverts from BL 1 to BL 2. Against budget line BL 2, there is another indifference curve IC 2 that is tangent with BL 2. So, under new market conditions when price of food decreases while price of other commodities remain constant and income of household income of consumer also remain constant then by using F 2 quantity of food consumer can maximize his satisfaction. And this movement from F 1 to F 2 is called as price effect. There is change in quantity of food that is being consumed by a particular consumer because of change in price of food, but this change in quantity of food can be divided into two component. One is called a substitution effect and other one is called as income effect. To find out substitution effect we have to draw a budget line that is parallel to BL 2 budget line, but tangent with original IC 1 indifference curve. And against this tangency we can find consumer is using F S quantity of food. And this movement from F 1 to F S is called as substitution effect. To sustain his level of satisfaction consumer substituted other quantity with the quantity of food when price of food decreases while the movement from F S to F 2 is called as income effect. When price of food decreases in fact real purchasing power of purchasing power of the consumer increases and because of that increase in real purchasing power of the consumer, consumer started use more quantity of food. So, price effect can be divided into two component one is substitution effect and other one is income effect. And in this particular case food acts as a normal commodity. When there is increase in real income of the consumer there is increase in consumption of food. When price of food decreases real income of the household increases and because of that increase in real income of the household consumption of normal good will increase. So, food in this case acts as a normal good. And similarly to explain if we consider food is an inferior commodity then again on the same pattern against BL 1 consumer can maximizes satisfaction along IC 1 indifference curve. Now, if price of food decreases because of that decrease in price of food budget line perverse from BL 1 to BL 2 against budget line BL 2 there is another indifference curve IC 2 that is tangent with budget line. So, the movement from F 1 quantity of food to F 2 quantity of food is called as price effect. Again this change in the consumption of food is observed because of change in price of food and change in price of food in this case is decrease in price of food. And again to find out substitution effect we have to draw another budget line that is parallel to BL 2, but tangent with IC 1. So, against this point of tangency we can find out the quantity of food that the consumer will choose and we are denoting that quantity of food with F s. So, the movement from F 1 to F s is because of substitution effect while the movement from F s to F 2 is income effect. Now, in this case we can observe substitution effect and income effect are in opposite direction. The when price of food decreases real income of the household increases, but because of increase in real income of the household consumer decided to decrease the consumption of food items. And we are indicating that decrease in food consumption of food items by moving from F s to F 2 and this decrease in consumption of food indicate the food is an inferior commodity. A change in price of food in fact has effects on the consumption of not only food, but also on the consumption of other commodities. So, when there is a decrease in price of any product it means there is increase in real income of the household. When we say there is increase in real income of the household then it indicate consumer has more purchasing power. So, by using the same amount of resources he is in a position to purchase more. Generally whenever we make discussion income effects are positive that is increase in income leads to increase in consumption of a commodity. And when this type of the phenomena is observed then we say commodity under consideration is a normal commodity. So, when we say price effect this price effect is in fact has two components one is substitution effect and other one is income effect. As far as substitution effect is concerned it is always negative if price of a commodity increases there is decrease in consumption of commodity. And if price of commodity decreases then there is increase in consumption of commodity under substitution effect this association is always negative. And this relationship holds for all type of the commodity whether the commodity is a normal commodity or commodity is a is an inferior commodity. But when we make discussion with reference to income effect that income effect will income effect depends upon the nature of the commodity. If commodity under consideration is a normal good then it relates negatively with change in price. If price of a commodity decreases because of that decrease in the price of commodity there is increase in real income of the household. And because of increase in real income of the household there is increase in demand for commodity. So, there is positive association between real income and quantity demand for the commodity. But when we make this discussion with reference to inferior goods or given goods in that case relationship as far as income effect is concerned for inferior or given goods it relates positively with change in price. If price of a commodity increases real income of household decreases but quantity demand will increase. In this diagram we are reporting the relationship between quantity demand for food and price under different situations. If we assume food is a normal commodity then the movement will be along orange color demand curve because of decrease in price from P 1 to P 2 increase in quantity demand for food is F n. But if we consider food is an inferior commodity again there is a negative association between price and quantity demand. But increase in quantity demand is relatively less than the increase in quantity demand when food is a normal commodity. But if we consider food is a given good then because of decrease in price of commodity from P 1 to P 2 there is a decrease in demand for food and this movement from F naught to F G indicates food is a given commodity. When commodity under consideration is a given commodity then usually it is a staple commodity. It is a commodity that constitutes a large portion of consumers expenditures and has a low price and in that case if we consider wheat is a staple commodity. So when there is an increase in price of wheat because of that increase in price of wheat there is significant decrease in real income of the household and because of that significant decrease in real income of the household consumer abhis position may not be able to purchase something else as a food item. So he has to increase his consumption of wheat as a food item. So in this case because of increase in price of wheat he has to increase his consumption of wheat items and in this case income effect and substitution effect moves in opposite direction. But income effect is much stronger than substitution effect. So because of increase in price of wheat there is increase in demand for wheat because of non usage of other commodities that are being used by that particular consumer. So on the basis of all of this discussion we can see the demand is basically determined on the basis of substitution effect and price effect. The demand is called as ordinary and marshallian demand if it is determined under price effect and demand is called as Hixian or compensated demand if it is determined on the basis of substitution effect. To make a clarification about Hixian and marshallian demand again we are using the concept of indifference curve and the budget line as you are very much familiar the price effect is movement from F1 to F2. So the movement given price of food decreases from P1 to P2 there is increase in demand of food items from F1 to F2. This movement this increase in demand for food from F1 to F2 because of decrease in price of food is called as marshallian demand curve and when we say compensated or Hixian demand curve it is in this case consumers expenditures are minimized to minimize subject to a fixed level of utility. So the movement when price of food decreases the movement from F1 to FS indicate demand of food items under Hixian demand. So under Hixian demand change in quantity demand is relatively less than change under marshallian demand.