Demand Outline I What is Demand A Demand
- Slides: 38
Demand
Outline I. What is Demand? A. Demand Schedules B. The Law of Demand Curves/Market Demand II. Change in Demand vs. Change in Quantity Demanded A. Change in Demand B. Change in Quantity Demanded
What is Demand? As we discussed earlier - there is a limited amount of goods out there. So how do we decide what we want? The concept of demand captures this issue. Demand is made up of two elements: – Desire for Goods and Services – Means to purchase those Goods and Services
Demand Schedules • Lets consider how many CDs you might demand in a month. (This is called “Quantity Demanded”) • We will first look at this information in a table called a “Demand Schedule” • Demand Schedule - a table showing the relationship between the price of a good and the quantity demanded period of time, ceteris paribus. – ceteris paribus: means "assuming all else is held constant". The attempt to distinguish an effect of one kind of change from any others.
Demand Schedule
Demand Schedule
Demand Schedule
Demand Schedule
Law of Demand • Law of Demand - the price of a product (or service) is inversely related to the quantity demanded, ceteris paribus.
Demand Schedules and Curves • Another way of characterizing Demand instead of using a schedule is a Demand Curve. • Demand Curve - a diagram showing the relationship between the price of a good and the quantity demanded period of time, ceteris paribus.
Demand Curve
Demand Curve P($) Note: ALWAYS label your axes! Qd per month
Demand Curve P($) 20 15 10 15 Qd per month
Demand Curve P($) 20 A 15 10 15 Qd per month
Demand Curve P($) 20 A B 15 10 15 Qd per month
Demand Curve P($) 20 A B 15 C 10 5 10 15 Qd per month
Demand Curve P($) 20 A B 15 C 10 D 5 0 5 10 15 Qd per month
Market Demand Curve • The demand curve we just drew was the Demand for CDs by one person. • Market Demand Curve - a curve showing the relationship between the price of a good and the total quantity demanded by all consumers in the market period of time, ceteris paribus. Market demand curves are obtained by summing the demand curves of individual consumers.
Market Demand Schedule • Market Demand Schedule - a table showing the relationship between the price of a good and the total quantity demanded by all consumers in the market period of time, ceteris paribus. • Market demand schedules are obtained by summing the demand schedules of individual consumers.
Market Demand Schedule
Market Demand Schedule
Market Demand Schedule
Market Demand Schedule
Change in Demand vs. Change in Quantity Demanded This is a very important distinction. In short a change in demand is a shift in the WHOLE demand curve. People are willing to buy more (or less) at every price.
Change in D vs. Change in Qd • Change in Demand - a change in the desire or means to purchase the good, thus there is a change in quantity demanded at EVERY price. • Change in Demand - a shift of the demand curve • A demand curve is drawn under the assumption of ceteris paribus. • When this assumption is relaxed, the entire demand curves shifts
Change in D vs. Change in Qd • Changes in Demand • Increase in demand - demand curve shifts to the right • Decrease in demand - demand curve shifts to the left
Change in Quantity Demanded • Change in Quantity Demanded (DQd) movement along a demand curve • A change in quantity demanded can only be caused by a change in the price of the good. • Changes in Quantity Demanded • Increase in Qd - a movement to the right along a demand curve • Decrease in Qd - a movement to the left along a demand curve
Increase in Demand
Increase in Demand P Qd
Increase in Demand P D Qd
Increase in Demand P D Qd
Increase in Demand P D D’ Qd
Increase in Qd
Increase in Qd P($) Qd
Increase in Qd P($) D Qd
Increase in Qd P($) A D Qd
Increase in Qd P($) A D Qd
Increase in Qd P($) A B D Qd
- Example of sentence outline
- Demand forecasting and estimation
- Deterministic and stochastic inventory models
- Schedule ng supply
- Distinguish between individual demand and market demand
- Measures to correct excess demand and deficient demand
- Dependent demand vs independent demand
- Dependent demand items
- Individual demand vs market demand
- Module 5 supply and demand introduction and demand
- Examples of independent demand items
- Norman outline
- Bum outline
- Axes paragraph examples
- Q literary critic
- Pathology outline
- Obs outline
- Conclusion outline
- Alexander hamilton financial
- Outline map of france paris
- Hunger games film study
- Making a difference outline
- Training session outline
- Intern program outline
- Toulmin model of argument essay outline
- Outline critical approaches to interpreting text
- Conclusion of antigone
- Outline algorithm
- Bagaimana anda mendefinisikan ide-ide melalui outline?
- Schaum's outline
- Chapter 1 outline
- Clustering outline
- Extended definition example
- Anar outline
- How to write pee paragraphs
- Media plan outline
- Circumferential tie in dentistry
- 2 chunk paragraph jane schaffer
- Wave properties lesson 2