DEMAND

Variables: Price is the determining factor (the independent variable) Quantity is the dependent variable And “ceteris Paribus”

DEFINITION #1 DEMAND: the amount of a good or service consumers are willing and able to purchase at different prices …

…At a particular moment in time, when all other conditions are equal, for the various prices

Variables: Price is the determining factor (the independent variable) Quantity is the dependent variable And “ceteris Paribus”

Definition #2 QUANTITY DEMANDED: the amount of a good or service consumers will purchase at a specific price

DEMAND SCHEDULE- a list of the amounts (quantity) of a good or service consumers will purchase at a variety of prices

demand schedule for greebes Price per Greebe Quantity Demanded Of Greebes $5. $ $3. $ ,100 $1. 1,600

THE LAW OF DEMAND: there is an inverse relationship between the price of a good and the quantity buyers are willing and able to purchase

How does it work? The Quantity demanded will increase as Prices go down The Quantity demanded will decrease as Prices go up

(Graphing the schedule) the DEMAND CURVE or LINE- is a graphical representation of a demand schedule

Movement from point a to point b

SLIDE Movement from point a to point b is a slide “on or along” the demand curve, resulting only from a change in price This is not a change in demand!!!!!!!!! –only a change in quantity demanded because of a price change

So, what changes Demand? What does that mean, a change in demand?