ability and willingness to buy a product Law of Demand Price and demand are inverse As price goes up demand goes down As price goes down demand goes up DEMAND SCHEDULE A listing that shows corresponding prices and quantities demanded ID: 741348
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Slide1
DEMANDSlide2
DEMAND
The
desire
, ability, and willingness to buy a product.Slide3
Law of Demand
Price and demand are inverse.
As price goes up = demand goes down
As price goes down = demand goes upSlide4
DEMAND SCHEDULE
A listing that shows corresponding prices and quantities demanded.Slide5
Mr. Lawson’s Demand Schedule for a
Blu
-Ray
PRICE
QUANTITY DEMANDED
$50
$40
$30
$20
$10$5
0011
23Slide6
DEMAND CURVE
Demand schedule in graph formSlide7
Mr. Lawson’s Demand Curve for a
Blu
-Ray
$50
$40
$30
$20
$10
$5
$0
0 1 2 3Slide8
Changes in Demand
Causes demand curve to SHIFT to the right or left.Slide9
Change in Demand
$50
$40
$30
$20
$10
$5
$0
0 1 2 3Slide10
Causes for Change in Demand?
Consumer Income
Consumer Taste
SubstitutesComplementsChange in ExpectationsNumber of ConsumersSlide11
Consumer Income
If consumer’s incomes increase they are able and willing to buy more products
If consumer’s incomes decrease they are less likely to buy products.
Ex.: When our unemployment rate is low, our economy strives.Slide12
Consumer Tastes
Advertising, news reports, fashion trends, and changes in the season have an affect on demand
Ex: In the month of October, people tend to buy items that are pink…Slide13
Substitutes
Products that can be used in place of other products.
Ex.: when the price of Coca-Cola goes up, the demand for Pepsi goes up.Slide14
Complements
An item that increases the use of another product.
Ex.: When the price of
blu-ray players goes down, consumers buy more blu-ray players
and
blu
-rays.Slide15
Change in Expectation
Change in what people expect in the future.
Ex.: the
iPhone 5 was announced in June. That caused the demand for
iPhone
4/4s to go down.
Ex.: consumers might wait until Black Friday to buy a product they know will be on sale.Slide16
Number of Consumers
An increase in the number of consumers will change the demand for an item.