1. C4S1: Demand Main Idea: –Demand is a willingness to buy a product at a particular price.

2. C4S1: Demand Key Terms: –Demand –Microeconomics –Demand schedule –Demand curve –Law of Demand –Market demand curve –Marginal utility –Diminishing Marginal Utility

4. C4S1: What is Demand? An Introduction to Demand –Microeconomics deals with individual decision- making –Demand is important to know in business planning –Must know what people have the willingness and ability to buy

5. C4S1: What is Demand? An Introduction to Demand –Individual Demand Schedule Shows the amount of a product that a consumer will buy at a given price Willing to buy more at a lower price

6. C4S1: What is Demand? An Introduction to Demand –Individual Demand Curve Information from the schedule is placed on a graph

7. C4S1: What is Demand? Law of Demand –As price goes up, quantity demanded goes down –As price goes down, quantity demanded goes up

8. C4S1: What is Demand?

9. Demand and Marginal Utility –The extra satisfaction you get from consuming one more unit of an item –Slices of pizza, soda, etc, all have diminishing marginal utility