Demand: Desire, ability, and willingness to buy a product

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Demand: Desire, ability, and willingness to buy a product

Presentation transcript:

Demand: Desire, ability, and willingness to buy a product The law of demand says that as the price of a good rises the quantity of the good consumers are willing and able to buy will decrease Inversely related Low price= High quantity High price= Low quantity Quantity Demanded- The amount of a good that buyers are willing and able to purchase at a given price. (SPECIFIC NUMBER)

Demand: Desire, ability, and willingness to buy a product The law of demand says that as the price of a good rises the quantity of the good consumers are willing and able to buy will decrease Inversely related Low price= High quantity High price= Low quantity Quantity Demanded- The amount of a good that buyers are willing and able to purchase at a given price. (SPECIFIC NUMBER)

Demand Schedule & Curve Demand schedule shows the relationship between the price of the good and the quantity demanded. Demand curve is a graph of the relationship between the price of a good and the quantity demanded

Demand Curve for Ice Cream Cones Price of Ice-Cream Cone $3.00 2.50 1. A decrease in price ... 2.00 1.50 The demand curve slopes downwards from left to right (a negative slope), indicating the Law of Demand. 1.00 0.50 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of 2. ... increases quantity of cones demanded. Ice-Cream Cones

Shifts and Changes in Demand Changes in Quantity Demanded (Qd) If there is a change in PRICE for the product, then there is a change in the QUANTITY DEMANDED (Qd) This causes movement ALONG the demand curve.