Demand
Willingness and ability to buy
Quantity demanded is one point
on a demand curve
Demand
• A relationship between price and quantity
• The law of demand
– As price increases, the quantity buyers are
willing and able to purchase declines, ceteris
paribus
– An inverse or negative relationship
PRICE
QUANTITY
Remember ……
• Demand does not shift, it does not move
either to the left or to the right, unless one
or more of the factors that affect demand
changes
• A price change does NOT shift or change
DEMAND
Factors that affect Demand
• Income
• Tastes & Preferences
• Prices of related goods
– Substitutes
– Complements
• Expectations
• Population