CHAPTER 4 DEMAND

What is this stuff? Desire, ability, and willingness to buy a product Microeconomic Concept Microeconomics- Economics dealing with small units such as individual firms

Law of Demand Quantity Demanded goes up as price goes down Quantity Demanded goes down as price goes up

Demand Schedule Chart that shows various quantities demanded at all prices at a given time

CREATE IN NOTES Demand Schedule with the following information Car Prices: $10,000,$15,000, $17,000 $20,000, $22,000 $25,000 Quantities: 22, 19, 75, 35, 40, 25 Make sure to follow Law of Demand

Demand Curve A graph showing the quantity demanded at each price Drawn downward and to the right Labeled “D”

CREATE IN NOTES A demand curve using the previous demand schedule Remember: Title, all labels

Extra satisfaction from acquiring one extra unit of a product Marginal Utility Extra satisfaction from acquiring one extra unit of a product

Diminishing Marginal Utility Have too many of something and the satisfaction starts to disappear