Demand!!!

Demand, What is it? The desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item. Willing to buy. Able to buy. Expressed in a time period

Three Factors that affect demand. Law of Diminishing Marginal Utility The Income Effect The Substitution Effect

Law of Diminishing Marginal Utility People will be more willing to purchase one more of a good or service despite a decrease in utility, if the price is low. Effects the willingness to buy.

The Income Effect People have a limited income. If a price increases then a household will be able to purchase less. Effects the ability to buy.

The Substitution Effect Some goods can fulfill the same wants as other goods. If a price of a good is to high then the consumer will look for a different good that is cheaper and satisfies the same want. Effects both ability and willingness to buy.

Law of Demand As price moves in one direction, quantity demanded moves in the opposite.

Demand Schedule