DEMAND
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Transcript of DEMAND
DEMAND
DEMAND The desire, ability, and willingness to
buy a product.
Law of Demand Price and demand are inverse. As price goes up = demand goes
down As price goes down = demand goes
up
DEMAND SCHEDULE A listing that shows corresponding
prices and quantities demanded.
Mr. Lawson’s Demand Schedule for a Blu-Ray
PRICE QUANTITY DEMANDED
$50$40$30$20$10$5
001123
DEMAND CURVE Demand schedule in graph form
Mr. Lawson’s Demand Curve for a Blu-Ray
$50
$40
$30
$20
$10
$5
$0 0 1 2 3
Changes in Demand Causes demand curve to SHIFT to the
right or left.
Change in Demand$50
$40
$30
$20
$10
$5
$0 0 1 2 3
Causes for Change in Demand?
Consumer Income Consumer Taste Substitutes Complements Change in Expectations Number of Consumers
Consumer Income If consumer’s incomes increase they
are able and willing to buy more products
If consumer’s incomes decrease they are less likely to buy products.
Ex.: When our unemployment rate is low, our economy strives.
Consumer Tastes Advertising, news reports, fashion
trends, and changes in the season have an affect on demand
Ex: In the month of October, people tend to buy items that are pink…
Substitutes Products that can be used in place of
other products.
Ex.: when the price of Coca-Cola goes up, the demand for Pepsi goes up.
Complements An item that increases the use of
another product.
Ex.: When the price of blu-ray players goes down, consumers buy more blu-ray players and blu-rays.
Change in Expectation Change in what people expect
in the future.
Ex.: the iPhone 5 was announced in June. That caused the demand for iPhone 4/4s to go down.
Ex.: consumers might wait until Black Friday to buy a product they know will be on sale.
Number of Consumers An increase in the number of
consumers will change the demand for an item.