1. Supply and Demand: Crash Course Economics #4 (Video)
Ch. 5 Demand
Remember the Demand Curve always runs DOWN. THINK D for down.
Supply and Demand: Crash Course Economics #4
(Video)
We’re going to talk about this concept of demand and how it relates to prices, as well as how it represents what people are willing and able to buy, at what price, and how much they are willing to buy.

2. Understanding Demand Principles
Demand: the amount of a good or service that consumers are willing and able to buy at all prices in a given period
In order to be part of the demand for a product, two things must be true:
You must be willing to buy the product
You must be able to buy the product
That willing and able part is really important, because as we’ll talk about in a bit, you can’t be “part” of the demand if you are not able to purchase the product or even willing to purchase the product.
Demand as a whole vs quantity demanded
Demand is kind of general, not specific
quantity demanded ex: Quantity demanded for an $11 CD is 30. Here we are talking about a specific quantity at a specific price.
Law of demand: Can be confusing. So if that $11 CD went up to $14, the quantity demanded would decrease. Not as many people would be willling and able to buy a Cd at that price. But if the price went down to $8, then the quantity demanded would go up. Why? Because it’s cheaper, more people would be willing and able to buy it.

3. Understanding Demand Principles
Quantity Demanded: the amount of a good or service that consumers are willing and able to buy at a specific price
Law of Demand: as prices increase, the quantity demanded decreases and vice versa
That willing and able part is really important, because as we’ll talk about in a bit, you can’t be “part” of the demand if you are not able to purchase the product or even willing to purchase the product.
Demand as a whole vs quantity demanded
Demand is kind of general, not specific
quantity demanded ex: Quantity demanded for an $11 CD is 30. Here we are talking about a specific quantity at a specific price.
Law of demand: Can be confusing. So if that $11 CD went up to $14, the quantity demanded would decrease. Not as many people would be willling and able to buy a Cd at that price. But if the price went down to $8, then the quantity demanded would go up. Why? Because it’s cheaper, more people would be willing and able to buy it.

4. Demand and Price Interactions
Demand can be influenced by price.
Affects the willingness to buy a product at different prices
Demand Schedule: Shows how prices influence demand by listing the quantities of a good that one person will buy at different prices.
Demand influenced by price
So we just talked about this right? This is basically the law of demand. Price affects how much of something people would be willing and able to buy something
Demand schedule is basically just a table that shows what an individual is willing to buy at different prices. On one side it’ll list the different possible prices of a product. On the other side, it’ll list how much that individual is willing and able to buy at those listed prices. An example is on the next slide.
A demand curve is a graphical representation of what was listed in the demand schedule.

5. Demand schedule and demand curve
Demand Curve: Also shows how prices influence demand by graphing the data listed in a demand schedule. As price changes, the quantity demanded moves along the demand curve.
Demand schedule and demand curve
An important thing to remember about the demand curve is that quantity will always be listed where it’s listed and so on.

6. Personal demand: the demand of just one person
Personal schedule
Personal schedule
Market Schedule
Personal demand: the demand of just one person
Market demand: the sum of all the individual quantities demanded in a market
Market Demand Schedule
Show market demand schedule

7. Market Curve
1.50
3.00
1.25
2.50
1.00
2.00
1.50
.75
.50
1.00
.25
.50 5 10 15 15 20 25 25 30 30 35 35 40 40 45 45 50 50 5 10 20

8. What Causes Changes in Demand?
Demand Shifters: things that cause a change in demand for a good or service
(T) Changes in preference of products
(R) Changes in prices of related products
Complementary: product used with a good
Substitute: different product that does the same job
(usually cheaper option)
(I) Changes in income
(B) Changes in the number of consumers in the market
(E) Changes in the expectations of consumers
Changes in income: Increase in income usually increases people’s demand for products and vice versa. What are things you are more willing and able to buy when you’ve got more mula in your pocket?
Changes in preference of products: When something gains popularity, demand for it will go up. What are some examples of things that gained popularity, or were trendy, that people wanted to buy? Sushi as an example.
Changes in prices of products
Complementary: product that is consumed with another product. Tennis balls and tennis rackets. Demand for tennis balls will increase or decrease along with demand for tennis rackets.
Substitute: Burritos and tacos example. If price for burritos goes up, people demand less, but taco price stays the same, consumers might be more willing to buy tacos instead of burritos..
Changes in number of consumers in a market: changes in number of consumers can cause market demand to shift. Ex: When James Bond came out, one of the busiest nights at the restaurant where i worked. this was because the restaurant is situated right next to the movie theater, perfect spot for people wanting to grab dinner or a drink before or after a movie. Can also be seasonal: Demand at Sweet Frog probably decreases during colder months. summer resort towns experience increase in market demand during summer months
Changes in the expectations of consumers: prices don’t have to fall or rise to shift market demand. Consumer expectations of those prices can shift demand. for example, if you find out that the product you’re going to buy will go on sale next week, at that moment, your demand for that product decreases, but will go up next week when the product goes on sale. Black friday example. Say you want to buy a new Samsung smart tv, but it’s expensive. Assume, it’s close to black friday. after seeing how expensive it is, you figure that the price for the tv will go down during black friday.
Demand and Supply Explained- Econ 2.1

9. Graphing the Changes in Demand
Changes in demand happen when quantities change at ALL prices.
Demand can increase or decrease
Always affected by outside factors
Demand and Supply Explained- Econ 2.1

10. Graphing the Changes in Demand
Increase
Shift to right
Graphing the Changes in Demand
Demand shift: when the curve moves
NOT affected by price
Demand decrease, demand curve shifts LEFT
Demand increase, demand curve shifts RIGHT
Decrease
Shift to Left

11. Works Cited