Transcript What is meant by term Demander

What is meant by term Demand ?
It is someone or some organization
that comes to the marketplace to
purchase goods/services /resources
d
P
Q
d
What is a Demand Curve?
It is a GRAPH of a demand schedule in
which, by convention , the relative price is
measured along the vertical axis and the
quantity measured along the horizontal axis
What is the meaning of term DEMAND?
It is the maximum quantity demanders
would be willing to buy in a market over a
particular time period at all possible prices.
It refers to the ENTIRE demand schedule
What is meant by Quantity Demanded ?
It refers to the amount demanded at a
single point along a demand curve. That is,
Quantity demanders are willing ro buy
from a market at a specific time
What is the LAW of Demand
?
All things being equal, there is an INVERSE
relationship between the relative price and
the quantity demanded. Simply, when the
relative price increase, the quantity
demanded decreases
What is the meaning of Excess Demand
?
This occurs when , at a particular market
price, the Quantity supplied by the
supplier decreases as the quantity
demanded increases. Excess demand is the
difference between QD and QS at that
price
At this time adjustment, the P increases until $1 .At
this point, there is no excess demand, and no need
for incentive for further price increases If the price
is free to increase, when there is excess demand ,
excess demand will be eliminated by the market
forces
Competition in the Marketplace based
on Price changes(Excess Demand
Principle)
What is the meaning of the Shift in
Demand ?
Suppose the drinking age is lowered from
21 to 18. What will happen to the Demand
for beer? The Demand for beer will
increase because more individuals will
enter the market
For example, at 1.50 cents