Transcript What is Demand?

What is Demand?
Movin on up to Microeconomics
Let’s Get the Definitions Out
of the Way
 Demand- the desire, willingness, and ability
to buy a product
 Microeconomics- Area of economics that
deals with behaviors and decisions made by
individuals or small firms
 Demand schedule- Chart showing prices and
quantity demanded (page 90)
 Demand Curve- Same info shown in graph
form
Law of Demand
This along with the Law of Supply are
the two most important laws in all of
economics
States that the quantity demanded
varies inversely with it’s price
As price goes up,demand goes down
As price drops, demand goes up
Market Demand Curves
Shows the quantities demanded by
everyone who is interested in that
product
More important when looking at what
price an item should be
Marginal Utility
The extra satisfaction a person gets by
acquiring one more unit of a product
As you buy more of a product, your
satisfaction will decline
This is the law of diminishing marginal
utility