DemandDemand

What is Demand?What is Demand?

The quantity of particular The quantity of particular goods or services that the goods or services that the market (or consumer) is market (or consumer) is willing to buywilling to buy

The Law of DemandThe Law of Demand

When the market demands a When the market demands a high quantity of a good or high quantity of a good or service, the prices for that service, the prices for that good will be highgood will be high

When the market demands a When the market demands a low quantity, the price will low quantity, the price will be lowbe low

Factors Affecting Factors Affecting DemandDemand

Price of GoodsPrice of Goods

The Prices of Substitute The Prices of Substitute or Complementary Goodsor Complementary Goods

Consumer IncomeConsumer Income

Future Expectations Future Expectations about either income or about either income or

priceprice

Taste or desire for the Taste or desire for the good or servicegood or service

The Demand CurveThe Demand Curve

The Law of DemandThe Law of Demand

The The law of demandlaw of demand states that states that quantity demanded moves in quantity demanded moves in the opposite direction of price the opposite direction of price (all other things held (all other things held constant), and this effect is constant), and this effect is observed in the downward observed in the downward slope of the demand curve. slope of the demand curve.

HomeworkHomework

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