C4S1: Demand
• Main Idea:– Demand is a willingness to buy a product
at a particular price.
C4S1: Demand
• Key Terms:– Demand– Microeconomics– Demand schedule– Demand curve– Law of Demand– Market demand curve– Marginal utility– Diminishing Marginal Utility
C4S1: What is Demand?
• An Introduction to Demand– Microeconomics deals with individual decision-
making– Demand is important to know in business planning– Must know what people have the willingness and
ability to buy
C4S1: What is Demand?
• An Introduction to Demand– Individual Demand Schedule
• Shows the amount of a product that a consumer will buy at a given price
• Willing to buy more at a lower price
Figure 4.1The Demand for Compact DiscsFigure 4.1The Demand for Compact Discs
C4S1: What is Demand?
• An Introduction to Demand– Individual Demand Curve
• Information from the schedule is placed on a graph
Figure 4.1The Demand for Compact DiscsFigure 4.1The Demand for Compact Discs
C4S1: What is Demand?
• Law of Demand– As price goes up, quantity demanded goes down– As price goes down, quantity demanded goes up
C4S1: What is Demand?Figure 4.2Individual and Market Demand CurvesFigure 4.2Individual and Market Demand Curves
C4S1: What is Demand?
• Demand and Marginal Utility– The extra satisfaction you get from consuming one
more unit of an item– Slices of pizza, soda, etc, all have diminishing
marginal utility