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DEMAND
DEMAND
Demand indicates willingness and ability to buy a good and services at certain level price in a specific period.
Demand depends on many factors, most of which is price.
Price has a negative effect on willingness to buy.
◦All else equal (ceteris paribus), as the price of a product falls, the quantity demanded will rise and vice versa.
tHE LAW OF DEMAND
tHE LAW OF DEMAND
lAW OF demand
lAW OF demand
INDIVIDUAL DEMAND AND MARKET DEMAND
INDIVIDUAL DEMAND AND MARKET DEMAND
Market demand
Market demand
The quantity of good demanded by ALL INDIVIDUALS or consumers in a market at a certain price in a given period of time.
linear demand function
linear demand function
determinants of demand
determinants of demand
normal goods vs inferior goods
normal goods vs inferior goods
Normal goods are those goods whose demand goes up when the consumer’s income increases.
Inferior goods are those goods whose demand falls when the consumer’s income increases.
Example : autotravel, kerosene
Distinguish between movement along the demand curve and shift in the demand curve
Distinguish between movement along the demand curve and shift in the demand curve
Important: KNOW THE DIFFERENCE BETWEEN A CHANGE IN THE QUANTITY DEMANDED AND A CHANGE IN DEMAND
exceptional demand
exceptional demand
Key concept
Key concept
What is the law of demand?
Why do demand curves have a negative slope?
When price changes, what happens?
When something changes other than price, what happens?
What can cause a shift in a demand curve?
Summary
Summary
END OF DEMAND THEORY
END OF DEMAND THEORY
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