1. 1
DEMAND AND SUPPLY

2. DEMAND AND SUPPLY Demand2
Demand
“It is the quantities of a product that consumers are willing and able to buy at various prices per period of time ceteris paribus”
Tutorial Notes

3. DEMAND AND SUPPLY Demand You are hungry.3
Demand
You are hungry.
There are many hungry people in Singapore.
You need food! They need food!!
Q1. How much will you be willing and able to pay for 1st hamburger to ensure that you get what you need.

4. DEMAND AND SUPPLY Demand Your Hamburger Demand Curve Price 3 2 1 D 104
Demand
Your Hamburger Demand Curve
Change in quantity demanded owing to changes in price
Price 3
Movement along the DD curve
Price decreases 2 1 D 10 20 30
Quantity
Qty demanded increases

5. DEMAND AND SUPPLY Demand Individual Hamburger Demand Curves P Q5
Demand
Individual Hamburger Demand Curves
Price P
Quantity Q
Hamburger Industry Demand Curve

6. Change in Quantity Demanded vs Change in Demand
DEMAND AND SUPPLY
Change in Quantity Demanded vs Change in Demand 6
Demand
Q2. What affects demand?
Q1. What affects quantity demanded?
Non-price factors eg. income, population, weather, taste and preference, price of related goods etc.
Change in price of product P P P1 P1 P2 D1 D0 D D2 Q Q Q1 Q2 Q2 Q1

7. DEMAND AND SUPPLY Demand Change in weather pattern7
Demand
In your groups, discuss how the following will influence demand for crude oil: (demand for crude oil and not quantity demanded for crude oil)
Change in weather pattern
Change in government legislation
Change in population size
Change in the price of a related product to crude oil
Change in taste and preference
Change in consumer expectation
Change in income.