We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byGavin Blackburn
Modified over 3 years ago
What is Demand? ©2012, TESCCC Economics Unit 4, Lesson 1
Objectives 1.Know the definition of demand. 2.Explain the three conditions for demand. 3.Describe and construct a demand schedule. 4.Construct a demand curve. 5.Explain the law of demand. 6.List and explain the three concepts that explain the law of demand. ©2012, TESCCC
DEMAND – Definition Amount of goods and services a consumer is willing and able to buy at various prices in a given time period ©2012, TESCCC
Conditions for Demand In this definition, we see there are three conditions for demand. 1. Willingness or desire 2. Ability – Financial means 3. Given time period ©2012, TESCCC
Are you willing to buy a Maserati? Do you want one? ©2012, TESCCC
Are you able to buy a Maserati? We mean financial ability. ©2012, TESCCC
Specific Time Period Will you buy a Maserati this year? ©2012, TESCCC
All buyers generally behave the same way, so we can make some generalities. ©2012, TESCCC
When price increases... quantity demanded decreases. OR When price decreases... quantity demanded increases. ©2012, TESCCC
This is called the law of demand!!! It shows the inverse relationship between price & quantity demanded. P QD ©2012, TESCCC
Demand Schedule Demand schedule – shows quantity demanded at various prices for one consumer Market Demand schedule – shows quantity demanded by all consumers in the market ©2012, TESCCC
Price Quantity Demand Schedule ©2012, TESCCC
Demand Curve You see a demand curve slopes downward, from left to right, showing the inverse relationship between price and quantity demanded. ©2012, TESCCC
P Q ©2012, TESCCC
P Q D ©2012, TESCCC
Limitations of Demand Curve The demand curve is only accurate for one set of conditions. It only shows changes in price. If anything other than price changes then the demand curve will no longer be valid. ©2012, TESCCC
Concepts That Explain the Law of Demand (why the demand curve slopes downward) ©2012, TESCCC
1. The Income Effect The price of an item goes up or down, and it is as if your income has changed; causing the quantity demanded to change. ©2012, TESCCC
2. Substitution Effect If the price of an item changes, especially if it goes up, a consumer will substitute another item that is cheaper. This causes the quantity demanded to change. ©2012, TESCCC
3. Diminishing Marginal Utility As each additional unit of a good or service is consumed, the satisfaction received from consuming that good decreases. For example, the first hamburger you eat is great but the second is not as satisfying, so you would not be willing to pay as much for it. The third brings even less satisfaction. ©2012, TESCCC
Chapter 4:Demand What is Demand? Factors affecting Demand Elasticity of Demand What is Demand? Factors affecting Demand Elasticity of Demand.
“Supply, Demand, and Market Equilibrium” MKT-AFMR-5 Analyze economics in the fashion industry.
The Nature of Demand Demand—The amount of a good or service that that a consumer is willing and able to buy at various possible prices during a given period.
Markets Markets – exchanges between buyers and sellers. Supply – questions faced by sellers in those exchanges are related to how much to sell and at.
C4S1: Demand Main Idea: –Demand is a willingness to buy a product at a particular price.
ECONOMICS CHAPTER 3, SECTION 1- THE NATURE OF DEMAND.
Unit 2 – Understanding Markets CHAPTERS 4, 5, 6, & 7.
A market is an institution or mechanism which brings together buyers and sellers of particular goods and services. ◦ May be local, national, or international.
Demand Change in QD or Change in D ©2012, TESCCC Economics Unit 4, Lesson 1.
1 Essential Question: Identify the two things that must happen in order for demand to occur, explain the difference between demand and quantity demanded,
Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.
DEMAND. What you write: Demand (D) is the desire, willingness, and ability to buy a good or service Demand is on the consumer’s side What you need to.
CHAPTER 4 DEMAND. Section 1: What Is Demand? Main Idea: Demand is a willingness to buy a product at a particular price. Objectives: Describe and illustrate.
Demand and law of Demand SARBJEET KAUR Lecturer in Economics.
1.Describe & illustrate the concept of demand. 2.Explain how demand & utility are related. 3.Explain what causes a change in quantity demanded 4.Describe.
Supply and Demand DEMAND DEFINED What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different.
Chapter 4 – Demand Glencoe McGraw-Hill Economics Principles & Practices.
Chapter 4. Demand – the desire AND ability to own or purchase Does not refer to wishes or dreams Law of Demand – the more it costs, the less you.
This saying will be used for 4 different definitions. All you will have to do is fill in the blanks!! THE AMOUNT OF A GOOD OR SERVICE THAT ___1____ ARE.
Chapter 7 Supply & Demand. Demand All consumers have a great influence on the price of all goods and services Demand – the amount of a good or service.
I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES.
Econ Unit 3 Demand. Demand refers to the desire, willingness, and ability to buy a good or service. The Demand Schedule is a table that lists the quantities.
Supply & Demand #1: What is Demand?. Journal What is the relationship between Rational Self-Interest Theory and Demand? –Copy AND answer –Use your resources.
Economics Chapter 4 Section 1. Into to Demand Demand - the desire, ability, and willingness to buy a product Demand - the desire, ability, and willingness.
The Nature of Demand 3.1 Demand—The amount of a good or service that that a consumer is willing and able to buy at various possible prices during a given.
Demand Mr. Nunn. Demand The willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period.
+ Demand Chapter 4 Sections 1 & 2 What is Demand? What Factors Affect Demand?
Demand. What Is Demand? Demand – the desire, ability, and willingness to buy a product Microeconomics – the area of economics that deals with behavior.
© SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.4 12.1 Students understand common terms & concepts and economics reasoning. Standard Address 1 Explain.
Demand Notes Quantity Demanded- the quantity of a good or service consumers are willing and able to purchase at a specific price at a given point in time.
Unit#2 NAME EconomicsDate/ Period Vocabulary Activity #1 Unit #2 1.Law of Demand-an increase in a goods price causes a decrease in quantity demanded 2.Purchasing.
The Law of Demand. The quantity demanded for an economic product varies inversely with its price. – Therefore, the higher the price, the less the quantity.
Unit 4: Supply & Demand DEMAND Chapter 4. Demand: the desire, ability and willingness to buy a product.
Warm-up A student opens a school lunch account with an opening balance of $50. Lunch costs $2 per day, and the student charges lunch to his account each.
Eco 7/1 Demand. The Marketplace In a market economy, consumers influence price of all goods and services. People decide what to buy and at what price-
Demand Chapter 4. What is Demand? Demand- the desire, ability, and willingness to buy a product. Microeconomics- the area of economics that deals with.
Chapter 20.1 What is Demand?. An Introduction to Demand In the U.S., the forces of supply and demand work together to set prices. Demand is the desire,
Chapter 4 Demand. Key terms Page 91 Define all 9 key terms using Cornell style notes to present terms and definitions. Vocab quiz will be _____________.
“The Law of Demand” 7-1 Notes Demand: How many goods and services consumers will buy at various prices Effected by –Willingness to buy –Ability to buy.
“Supply, Demand, and Market Equilibrium”. Introduction to Demand In the United States, the forces of supply and demand work together to set prices. Demand.
What is demand? More than just want of a good or service. Must have: Desire to buy Ability, capacity to buy Willingness to buy product It is a mix of what.
Demand Economics – Chapter 3. Demand The amount of a good or service that a consumer is willing and able to buy at various possible prices during a.
Supply and Demand. Voluntary exchange, agreeing on terms Demand in economics, the different amounts we will purchase at various prices. Market
Demand and Supply Chapters 4, 5 and 6. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at.
I. Demand. A. Demand Defined 1.What is Demand Demand is the different quantities of goods that consumers are willing and able to buy at different prices.
The law of demand What is the law of demand? How do income and the law of diminishing marginal utility apply to demand? What’s the difference between the.
DEMAND. What is demand? Demand effects everything from ‘A’ Apples.
SUPPLY AND DEMAND CH 4 SEC 2 CH 5 SEC 1 CH 6 SEC 2.
Unit 2: Supply, Demand, and Consumer Choice Length: 3 Weeks 1.
© 2017 SlidePlayer.com Inc. All rights reserved.