1. Unit One:
Supply and Demand

2. I. The Demand Curve
Demand: the desire to own something AND ability to pay for it

3. I. The Demand Curve
Law of Demand: consumers will buy more of a good when its price is lower and less when its price is higher

4. I. The Demand Curve
Demand schedule: table that lists the quantity of a product that a consumer will purchase at different prices levels.

5. Change in Quantity Demand
I. The Demand Curve
Change in Quantity Demand
Only price changes
Movement along the curve
Change in Demand
Something other than price changes
New shift in the demand curve
Change in Quantity Demanded: change in the actual amount of a good or service consumers are willing and able to buy at some specific price.
We assume Ceteris Paribus (all other things held constant)
Change in Demand: a shift of the demand curve, which changes the quantity demanded at any given price.

6. II. Determinants of Demand
Will either increase or decrease quantity demanded regardless of price

7. II. Determinants of Demand
Changes in Income:
Income affects our demand for products

8. II. Determinants of Demand
Consumer Expectations:
Expectations about the future can impact demand

9. II. Determinants of Demand
Changes in Population:
An increase in the amount of people leads to higher demand for a given product

10. II. Determinants of Demand
Taste and Preferences:
Cannot be totally explained, but demand for products shift depending upon the tastes of the population

11. II. Determinants of Demand
Prices of Related Goods:
Demand for one good can be effected by a change in demand for another good.