1. Unit 4: Supply & Demand DEMAND Chapter 4

2. Demand: the desire, ability and willingness to buy a product.

3. What is market research? -gathering & evaluating information about customer preferences Survey customers to see how much of an item they would buy at various prices Top 10 Marketing Failures http://www.youtube.com/watch?v=hxRqKgjD3vY

4. Demand Schedule: (form of a table) -A listing that shows the quantity demanded at all prices in the market

5. Demand Curve: (form of a graph) -Tells the quantity that consumers will demand at each and every price Price is always on the vertical axis (y-axis) And Quantity Is always on the horizontal axis (x-axis) Demand curves slope downward

6. Demand Curve Pt. Price of DVDs Quantity Demanded A$300 B$251 C$202 D$153 E$104 F$55 0 Quantity Price 1 2 45 3 5 15 20 10 25 30 A B C D E F

7. Quantity Demanded – the amount of a product purchased at a given price © www.myilstu.edu

8. Law of Demand: the quantity demanded for an economic product varies inversely with its price As price goes up Quantity demanded goes down P D

9. As price goes down Quantity demanded goes up P D

10. © www.instruction.blackhawk.edu Law of Demand illustrated:

11. -When the quantity demanded changes, it will cause you to move along the same curve, up/down  We call these “movers” Movement on the Curve

12. Quantity Price A B C D E F Change in Quantity Demand