Transcript Demand - Southeast Missouri State University

Demand
Demand is a relationship which
shows the various quantities
consumers are willing and able to buy
of a good at different possible prices
of a good.
Demand Schedule for Good Z
Price
$1.00
2.00
3.00
4.00
5.00
6.00
Quantity Demanded
50
40
30
20
10
0
Demand Curve for Good Z
Price 6
5
4
3
2
D
1
0
10
20
30
40
50
60 Quantity
Demanded
Law of Demand
Price and quantity demanded are
inversely related.
Determinants of demand
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•
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•
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Number of Buyers
Prices of Other Goods
Incomes of the Buyers
Tastes and Preferences
Subsidies and Taxes
Expectations
Change in Quantity Demanded
Move Along Same Demand Curve
Price 6
5
A
4
B
3
2
D
1
0
10
20
30
40
50
60 Quantity
Demanded
Change in the Demand Curve (Increase)
Price 6
5
A
4
B
3
2
D2
1
D1
0
10
20
30
40
50
60 Quantity
Demanded
Change in the Demand Curve (Decrease)
Price 6
5
4
B
3
A
2
1
D1
D2
0
10
20
30
40
50
60 Quantity
Demanded