The Demand Curve and The Demand Schedule Demand

The Demand Curve and The Demand Schedule

Demand Schedule �A table showing how much of a good or service consumers will want to buy at different prices � See pg. 50; Figure 5. 1

Demand Curve, Change in Demanded and Change in Quantity Demanded � Demand Curve – A graphical representation of the demand schedule � Quantity Demanded – The actual amount consumers are willing to purchase at some specific price � Change in Demanded – Due to some circumstance (determinant) there is an increase in quantity demanded or decrease in quantity demanded, creating a new curve.

Demand Curve, Change in Demanded and Change in Quantity Demanded � Change in quantity demanded – Due to price, there is an increase or decrease in quantity demanded. � Change in quantity demanded results in a movement along the demand curve.

Understanding Shifts of the Demand Curve � Changes in Prices of related goods or services – substitutes or complements � Change in Income ◦ Normal Goods, Inferior Goods � Changes in Taste (preferences) – Advertising, fads, beliefs, cultural shifts, etc. � Change in Expectations – Wait for seasonal sales, If you hear a price is going up, consumers tend to rush out and purchase it before the price goes up.

Understanding Shifts of the Demand Curve � Change in the Number of Consumers – Growing population.