Transcript Supply & Demand - Petoskey Public Schools

Supply & Demand
The Law of Demand
Demand in Economics = Special Meaning
 Demand
does not represent a
want
 It
represents all of the goods and
services consumers will purchase
at various prices.
Demand includes two factors:

A willingness to consume
And
the ability to purchase
The Law of Demand – Part I
Price
Quantity
Demanded
The Law of Demand – Part II
Price
Quantity
Demanded
Utility
 Util
= Hypothetical unit used to
measure how much utility a
person obtains from consuming a
good or service.
 Utility = The satisfaction or
enjoyment a person obtains from
consuming a good or service.
Marginal Utility
rTotal Utility
________________________________________
rQuantity