Presentation is loading. Please wait.

Presentation is loading. Please wait.

Demand Demand.

Published byFarida Wibowo Modified over 5 years ago

Similar presentations

Presentation on theme: "Demand Demand."— Presentation transcript:

1 Demand Demand

2 Demand Is the quantity of a good or service which consumers are
willing; and able to buy at a particular price in a certain period of time.

3 Individual and Market Demand:

4 Demand The relationship between demand and price Price Demand 
the income effect – not able the substitution effect – not willing The demand curve

5 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 Market demand (tonnes 000s) 700 A Price (pence per kg) A Demand Quantity (tonnes: 000s)

6 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 40 Market demand (tonnes 000s) 700 500 A B Price (pence per kg) B A Demand Quantity (tonnes: 000s)

7 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 40 60 Market demand (tonnes 000s) 700 500 350 A B C C Price (pence per kg) B A Demand Quantity (tonnes: 000s)

8 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 40 60 80 Market demand (tonnes 000s) 700 500 350 200 A B C D D C Price (pence per kg) B A Demand Quantity (tonnes: 000s)

9 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 40 60 80 100 Market demand (tonnes 000s) 700 500 350 200 100 A B C D E D C Price (pence per kg) B A Demand Quantity (tonnes: 000s)

10 Note shape of curve - page 37
Demand Exceptions to the Law of Demand prestige goods quality assumption expectations of future price rises Giffen goods Note shape of curve - page 37

11 Demand Law of Demand assumes Ceteris Paribus
What does ceteris paribus mean? “other things remain the same” factors other than price don’t change.

12 Demand Other determinants of demand
Tastes (likes) price of substitute goods price of complementary goods income number of consumers (population/age) Expectations of price changes Movements along – contraction and extension Shifts in the demand curve

13 Market demand for potatoes (monthly)
Point Price (pence per kg) 20 40 60 80 100 Market demand (tonnes 000s) 700 500 350 200 100 A B C D E D C Price (pence per kg) B A Demand Quantity (tonnes: 000s)

14 Change in demand condition
An increase in demand Demand D1 Change in demand condition P Price D0 O Q0 Q1 Quantity

15 What else could shift demand?
Weather? Availability of credit? Media report? Careless comment? Swine flu? Terrorism? Recession? "Most of the egg production in this country, sadly, is now affected with salmonella," she told reporters

16 Derived Demand Pear Cider
Derived demand is when the demand from one good arises from the demand for another good: Pear Cider

Download ppt "Demand Demand."

Similar presentations

CONCEPT OF DEMAND DEMAND FOR A COMMODITY REFERS TO THE NUMBER OF UNITS OF A PARTICULAR GOODS OR SERVICE THAT CONSUMERS ARE WILLING AND ABLE TO PURCHASE.

CONCEPT OF DEMAND DEMAND FOR A COMMODITY REFERS TO THE NUMBER OF UNITS OF A PARTICULAR GOODS OR SERVICE THAT CONSUMERS ARE WILLING AND ABLE TO PURCHASE.
All Rights ReservedMicroeconomics © Oxford University Press Malaysia, 2008 2– 1.

All Rights ReservedMicroeconomics © Oxford University Press Malaysia, – 1.
Demand Ch. 4.

Demand Ch. 4.
How Markets Work A Change in Demand. When a factor that affects the buying plan other than the price of the good changes, there is a change in demand.

How Markets Work A Change in Demand. When a factor that affects the buying plan other than the price of the good changes, there is a change in demand.
Supply and Demand. Supply and Demand Demand Relationship between demand and price  the law of demand  the income effect  the substitution effect The.

Supply and Demand. Supply and Demand Demand Relationship between demand and price  the law of demand  the income effect  the substitution effect The.
Supply and Demand in Action The Motion of a “Free Market”

Supply and Demand in Action The Motion of a “Free Market”
ECONOMICS – I – [1.2] Defining terms – define once per article but refer back Be clearly specific – don’t assume I know etc Simplified models – PPC and.

ECONOMICS – I – [1.2] Defining terms – define once per article but refer back Be clearly specific – don’t assume I know etc Simplified models – PPC and.
Prepared by Kokab Manzoor

Prepared by Kokab Manzoor
Demand Notes Quantity Demanded- the quantity of a good or service consumers are willing and able to purchase at a specific price at a given point in time.

Demand Notes Quantity Demanded- the quantity of a good or service consumers are willing and able to purchase at a specific price at a given point in time.
Demand. What is Demand? The quantity of particular goods or services that the market (or consumer) is willing to buy The quantity of particular goods.

Demand. What is Demand? The quantity of particular goods or services that the market (or consumer) is willing to buy The quantity of particular goods.
Supply Q: Why is advice so cheap? A: Because supply always exceeds demand.

Supply Q: Why is advice so cheap? A: Because supply always exceeds demand.
Understanding Demand. Law of Demand Describes the behavior of consumers Write down $.50, $1.00, $2.00. Next to each number write the number of sodas you.

Understanding Demand. Law of Demand Describes the behavior of consumers Write down $.50, $1.00, $2.00. Next to each number write the number of sodas you.
Demand.  Demand can be defined as the quantity of a particular good or service that consumers are willing and able to purchase at any given time.

Demand.  Demand can be defined as the quantity of a particular good or service that consumers are willing and able to purchase at any given time.
1.2.2 Unit content Students should be able to: Define demand

1.2.2 Unit content Students should be able to: Define demand
Unit 3 SUPPLY AND DEMAND. Chapter 4 DEMAND  To have demand for a product you must be WILLING and ABLE to purchase the product  WILLING + ABLE = DEMAND.

Unit 3 SUPPLY AND DEMAND. Chapter 4 DEMAND  To have demand for a product you must be WILLING and ABLE to purchase the product  WILLING + ABLE = DEMAND.
Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.

Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.
THE LAW OF DEMAND. The quantity demanded is the amount of a good that consumers are willing and able to purchase at a particular price over a given period.

THE LAW OF DEMAND. The quantity demanded is the amount of a good that consumers are willing and able to purchase at a particular price over a given period.
Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.

Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.
What three factors determine the demand for a product?

What three factors determine the demand for a product?
Change in quantity demanded vs. change in demand.

Change in quantity demanded vs. change in demand.

Similar presentations

Ads by Google