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 quantity of good demanded by ALL INDIVIDUALS or consumers in a market at a certain price in a given period of time.
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
Important: KNOW THE DIFFERENCE BETWEEN A CHANGE IN THE QUANTITY DEMANDED AND A CHANGE IN DEMAND
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?