1. Demand The desire, ability and willingness to buy a product
in order for demand to be counted in the market place, wanting a product must coincide with the ability and willingness to pay for it
Demand is a microeconomic concept
the part of the economy that deals with behavior and decision making by small units, such as individuals and firms

2. The Demand Schedule
a listing that shows the quantity demanded at all prices that might prevail in the market at a given time
PRICE VS. QUANTITY DEMANDED
Market and Individual

3. The Law of Demand
The demand for an economic product varies inversely with its price
As price increases, demand decreases and vice versa

4. The Demand Curve
A graphic depiction of the points corresponding to a demand schedule
also illustrates the quantity that consumers will demand at each and every price
Downward sloping
Represents the law of demand and diminishing marginal utility

5. Changes in Demand
A change in the quantity demanded is a change in the quantity of the product purchased in response to a change in its price
movement along the demand curve
this is different than a change in demand
movement of the entire curve

6. INCOME
As your income goes up, you could buy more of a product at the same price (I get a raise)
demand curve shifts out to the right
If your income went down, you would have a tendency to buy less of a product at the same price (I get fired)
demand curve shifts in to the left

7. Consumer Tastes
Popularity may increase because of fads, friends, or the media
Subway, Beanie Babies, movies, etc.
Increase in demand at every price so curve shifts to the right
Popularity may decrease due to loss of interest by media, friends, etc.
Decrease in demand at every price so curve shifts to the left

8. Substitutes Substitute Goods – products that can be used for another
if the price of I-pods increased, it could increase the demand for generic MP3 Players at the same price
shift Demand Curve for generic MP3 Players out to the right and for I-Pods to the left
in general, the demand for a product increases if the price of its substitute goes up (and vice versa)

9. Complimentary Goods Goods that are used with one another
if the price of a Swiffer mop goes down, the demand for Swiffer mops,pads, and liquid will increase
shift the demand curve for Swiffer mops,pads, and liquid out to the right
in general, a decrease in the price of one good usually leads to an increase in demand for its compliment (and vice versa)