1. CONTEMPORARY ECONOMICS
4.1 The Demand Curve
CONTEMPORARY ECONOMICS
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Demand
4.1 The Demand Curve
4.2 Elasticity of Demand
4.3 Changes in Demand
LESSON 4.1

2. 4.1 The Demand Curve
CONSIDER
Why are newspapers sold in vending machines that allow you to take more than one copy?
How much chocolate do you eat when you can eat all you want?
What cures spring fever?
What economic principle is behind the saying, “Been there, done that”?
Why do higher cigarette taxes cut smoking by teenagers more than by other age groups?

3. Explain the law of demand Interpret a demand schedule and demand curve
4.1 The Demand Curve
Objectives
Explain the law of demand
Interpret a demand schedule and demand curve

4. 4.1 The Demand Curve Key Terms demand law of demand marginal utility
law of diminishing marginal utility
demand curve
quantity demanded
individual demand
market demand

5. 4.1 The Demand Curve
Demand
Demand indicates how much of a product consumers are both willing and able to buy at each possible price during a given period, other things remaining constant.

6. 4.1 The Demand Curve
Law of Demand
The law of demand says that quantity demanded varies inversely with price, other things constant.
Thus, the higher the price, the smaller the quantity demanded.

7. Law of Demand Demand, wants, and needs Substitution effect
4.1 The Demand Curve
Law of Demand
Demand, wants, and needs 
Substitution effect
Income effect
Diminishing marginal utility

8. Demand Schedule and Demand Curve
4.1 The Demand Curve
Demand Schedule and Demand Curve
Demand versus quantity demanded
Individual demand and market demand

9. Demand Schedule and Demand Curve for Pizza
4.1 The Demand Curve
Demand Schedule and Demand Curve for Pizza
Price per Pizza
Quantity Demanded per Week (millions) a
$15 8 b 12 14 c 9 20 d 6 26 e 3 32
Figure 4.1

10. Individual Demand for Pizzas
4.1 The Demand Curve
Individual Demand for Pizzas
$12 8 4
Price 1 2 3
Pizzas (per week)
(a) Hector d H
$12 8 4 1 2
(b) Brianna d B
$12 8 4 1
(c) Chris d C
Figure 4.4

11. Market Demand for Pizzas
4.1 The Demand Curve
Market Demand for Pizzas
$12 8 4
Price 1 2 3
Pizzas (per week)
(d) Market demand for pizzas 6 d H B C D + =
Figure 4.4