1. Supply & Demand
The Law of Demand

2. Demand in Economics = Special Meaning
Demand does not represent a want
It represents all of the goods and services consumers will purchase at various prices.

3. Demand includes two factors:
A willingness to consume
And the ability to purchase

4. The Law of Demand – Part I
Price Quantity
Demanded

5. The Law of Demand – Part II
Price Quantity
Demanded

6. Utility
Util = Hypothetical unit used to measure how much utility a person obtains from consuming a good or service.
Utility = The satisfaction or enjoyment a person obtains from consuming a good or service.

7. ________________________________________
Marginal Utility
rTotal Utility
________________________________________
rQuantity