1. Demand

2. What is Demand?
Demand refers to a relationship between price and the quantity of a good or service that consumers demand.

3. Law of Demand
A microeconomic law that states that, all other factors being equal, as the price of a good/service increases, the quantities consumers demand for the good/service will decrease and vice versa. 

4. Demand Explained
A higher price for a good leads to a smaller quantity demanded.
Demand is illustrated as a downward-sloping curve on a graph with quantity on the x axis and price on the y axis.

5. Quantity Demanded
quantity demanded is a specific amount that is demanded at a particular price.

7. Change in Demand
A change in demand means that at every possible price, a different quantity will be demanded.

8. Change in Demand
What is a substitute good? Competing products that can be used in place of one another; they’re related in such a way that an increase in the price of one increases the demand for the other
Examples: beef and chicken; butter and margarine

9. Change in Demand
What is a complimentary good? Goods (or services) that are used together
Examples: Cars and gasoline; computers and Internet service

10. Change in demand
Demand for a good will increase if the good becomes more popular, but demand will decrease if the good becomes less popular.

11. Factors That Cause Changes in Market Demand
1 - Consumer income/wealth

12. Factors That Cause Changes in Market Demand
2 - Consumer tastes and preferences (due to advertising)

13. Factors That Cause Changes in Market Demand
3 - Change in the price of substitute goods
4 - Change in the price of complementary goods

14. 5 - Change in expectations

15. 6 - Change in number of consumers

17. Price
Quantity $2 8 $4 6 $6 4 $8 2
$10