ECONOMICS Demand - PowerPoint PPT Presentation

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ECONOMICS Demand

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ECONOMICS Demand Staker DEMAND DEMAND: desire, ability and willingness to buy a product. Measured by sales. DEMAND CURVE DEMAND CURVE: shows how much consumers will ... – PowerPoint PPT presentation

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Title: ECONOMICS Demand


1
ECONOMICS Demand
  • Staker

2
DEMAND
  • DEMAND desire, ability and willingness to buy a
    product.
  • Measured by sales.

3
DEMAND CURVE
  • DEMAND CURVE shows how much consumers will
    demand at each and every price.
  • Demand curves always go DOWNWARD
  • Supply curves always go UPWARD

4
LAW OF DEMAND
  • LAW OF DEMAND
  • as prices go up demand goes down
  • As prices go down demand goes up


5
Law of Demand
  • The law of demand says that when a goods price
    is lower, consumers (you) will buy more of it.
    (On the other hand, when prices are higher
    consumers will buy less of it.)

6
Demand Schedules
  • A market demand schedule shows the quantities
    demanded at each price by all consumers in the
    market.
  • An individual demand schedule shows the
    quantities demanded at each price by one consumer
    in the market

7
Demand Curve
  • A demand curve is a graphic representation of a
    demand schedule. The curve or line usually
    slopes downward and to the right.

8
CHANGE IN DEMAND
  • CHANGE IN DEMAND when people are willing to buy
    more or less of a product at the SAME PRICES.
  • Curve shift to LEFT decreased demand
  • Curve shift to RIGHT increased demand

9
WHY DOES DEMAND CHANGE?
  • Consumer Income As income goes up/down,
    consumers buy more/less of a product.
  • Consumer Tastes Advertising, trends, and even
    seasons can affect demand.
  • Prices of Related Products change in the price
    of related products can change demand.
  • Ex. Butter vs. Margarine
  • Population
  • Consumer Expectations

10
SUBSTITUTION EFFECT
  • SUBSTITUTION EFFECT Change in quantity demanded
    for one product because of a change in the price
    of another product.
  • Ex. Butter prices go up, so people will start
    buying more margarine (a substitute for butter)

11
COMPLEMENTARY GOODS
  • COMPLEMENTS related goods where use of one
    increases the use of the other. (CDs and CD
    players).
  • EX - Lower price of CD players means higher
    demand for CD players and also higher demand for
    CDs.
  • EX - Higher CD player prices cause less demand
    for CDs.
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