Transcript The Law of Demand

Demand
What is Demand?
 The
quantity of particular goods or
services that the market (or
consumer) is willing to buy
The Law of Demand
 When
the market demands a high
quantity of a good or service, the
prices for that good will be high
 When the market demands a low
quantity, the price will be low
Factors Affecting Demand
Price of Goods
The Prices of Substitute or
Complementary Goods
Consumer Income
Future Expectations about either
income or price
Taste or desire for the good or
service
The Demand Curve
The Law of Demand
 The
law of demand states that
quantity demanded moves in the
opposite direction of price (all
other things held constant), and
this effect is observed in the
downward slope of the demand
curve.
Homework
Pg.136-137 - #1,2, 4, 5