Demand, Supply
d n a m e
D
Topic Preview
learn that you express demand for a product when you are willing and able to purchase it
learn about the factors that cause changes in demand
What is demand?
- combination of desire, ability, and willingness to buy a product
Main Idea: Demand is a concept specifying the different quantities of an item that will be bought at different prices. the concept of demand is easy to understand because it involves only two variables—the price and quantity of a specific product at a given point in time.
Demand Schedule- a table that lists how much of a product consumers will buy at all possible prices A. Demand Schedule
Price
Quantity
Demanded
299Php
0
275
0
250
1
200
3
175
5
150
8
Demand Curve - a curve that shows the quantities demanded at all possible prices
Law of Demand
When the price of something goes up, the quantity demanded goes down. Likewise, when the price goes down, quantity demanded goes up.
Thought to Ponder:
Why We Call It a
“Law”?
Market Demand Curve- a curve that shows how much of a product all consumers will buy at all possible prices Utility- term that describes the amount of usefulness or satisfaction that someone gets from the use of a product Marginal
Utility—
the extra usefulness or additional satisfaction a person gets from acquiring or using one more unit of a product—is an important extension of this concept because it explains so much about demand
Diminishing Marginal Utility- the principle which states that the extra satisfaction we get from using additional quantities of the product begins to decline
Change in the Quantity
Demanded
Only a change in price can cause a change in quantity demanded.
- a change that is graphically represented as a movement along the demand curve. When the price goes up, fewer goods are demanded. When the price goes down, more are demanded.
p.119 figure
THE INCOME EFFECT
When the price of a product drops, consumers pay less and, as a result, have some
D
Topic Preview
learn that you express demand for a product when you are willing and able to purchase it
learn about the factors that cause changes in demand
What is demand?
- combination of desire, ability, and willingness to buy a product
Main Idea: Demand is a concept specifying the different quantities of an item that will be bought at different prices. the concept of demand is easy to understand because it involves only two variables—the price and quantity of a specific product at a given point in time.
Demand Schedule- a table that lists how much of a product consumers will buy at all possible prices A. Demand Schedule
Price
Quantity
Demanded
299Php
0
275
0
250
1
200
3
175
5
150
8
Demand Curve - a curve that shows the quantities demanded at all possible prices
Law of Demand
When the price of something goes up, the quantity demanded goes down. Likewise, when the price goes down, quantity demanded goes up.
Thought to Ponder:
Why We Call It a
“Law”?
Market Demand Curve- a curve that shows how much of a product all consumers will buy at all possible prices Utility- term that describes the amount of usefulness or satisfaction that someone gets from the use of a product Marginal
Utility—
the extra usefulness or additional satisfaction a person gets from acquiring or using one more unit of a product—is an important extension of this concept because it explains so much about demand
Diminishing Marginal Utility- the principle which states that the extra satisfaction we get from using additional quantities of the product begins to decline
Change in the Quantity
Demanded
Only a change in price can cause a change in quantity demanded.
- a change that is graphically represented as a movement along the demand curve. When the price goes up, fewer goods are demanded. When the price goes down, more are demanded.
p.119 figure
THE INCOME EFFECT
When the price of a product drops, consumers pay less and, as a result, have some