1.2.2 Demand
Specification
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The distinction between movements along a demand curve and shifts of a demand curve
The factors that may cause a shift in the demand curve (the conditions of demand)
The concept of diminishing marginal utility and how this influences the shape of the demand
curve
Summary
Demand is the amount that consumers are willing and able to buy at a given price. It usually varies with price
as a lower price for a good will increase its demand and visa versa. This change in demand and price is a
movement and can been seen along the demand curve. Demand curves always slope down.
Price change does not cause a shift in the demand curve, factors that do cause a shift are:
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Population
Income
Related goods
Advertising
Tastes and fashion
Expectations
Seasons
The diminishing marginal utility rule is that after a consumer has consumed a product once they will then have
less demand for the item again and so will not pay as high a price as before
Videos on demand:
http://www.bws-school.org.uk/CurriculumExams/Economics/files/Year%2012/Videos/Theme%201/ASLevel%20Economics%20Video%204%20-%20Demand%20and%20the%20D%20curve.mp4
https://youtu.be/VvTzaNUDVms
Exam Questions on demand:
D