The law of demand
This presentation is the property of its rightful owner.
Sponsored Links
1 / 17

The Law of Demand PowerPoint PPT Presentation


  • 268 Views
  • Uploaded on
  • Presentation posted in: General

The Law of Demand. Objectives Explain the law of demand and how a demand schedule is represented in a demand curve. Understand the difference between and individual and a market demand curve. Law of Demand. Key Terms Demand Quantity demanded Law of demand Demand schedule Demand curve

Download Presentation

The Law of Demand

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


The law of demand

The Law of Demand

Objectives

Explain the law of demand and how a demand schedule is represented in a demand curve.

Understand the difference between and individual and a market demand curve.


Law of demand

Law of Demand

  • Key Terms

    • Demand

    • Quantity demanded

    • Law of demand

    • Demand schedule

    • Demand curve

    • Individual demand curve

    • Market demand curve


How many coffees would you buy in a week if your coffee at starbucks cost 8

How many coffees would you buy in a week if your coffee at Starbucks cost $8?


Law of demand1

Law of Demand

  • Demand

    • Relationship between price and quantity demanded for a good or service, when other variables are held constant.

    • The buying side in a market

  • Quantity demanded

    • The amount of goods and services purchased at a given price.


Law of demand2

Law of Demand

  • Law of demand

    • There is an inverse relationship between the price of a good or service and the quantity buyers purchase

    • Guided by self interest

  • Demand schedule

    • A table that lists the quantity of a good or service consumers purchase at various possible prices


Bob s demand schedule for dvds

Bob’s Demand Schedule for DVDs

Demand schedule: A table that lists the quantity of a good or service consumers purchase at various possible prices


Law of demand3

Law of Demand

  • Demand Curve

    • Formed by the line connecting points that represent possible combinations of price and quantity purchased by consumers

    • A summary of buying intentions


Bob s demand curve for dvds

Bob’s Demand Curve for DVDs


Market demand

Market Demand

  • Individual demand curve (D1)

    • The demand for a single consumer

  • Market demand curve (Dtotal)

    • Sum of all the individual demand curves in a market


Market demand schedule for dvds

Market Demand Schedule for DVDs


Market demand curve for dvds

Market Demand Curve for DVDs


Think pair share

Think/Pair/Share

  • Create an individual demand schedule (weekly) for each of the following goods at the provided price increments:

    • School Lunch $2, $4, $6, $8

    • Bottled Water $1, $3, $5, $7

    • DVD/BluRay $5, $10, $15, $20

  • With a partner combine your individual demand to create a market demand schedule for each product.

    **Remember to hold all other variables constant**


Review

Review

  • True or False: The concept of demand is based on the responses of sellers to price changes

    False


Review1

Review

  • True or False: A market demand curve is the sum of all the individual demand curves in a market

    True


Review2

Review

  • The law of demand states there is an ___________ relationship between the price of a good or service and the quantity buyers purchase.

    Inverse


Review3

Review

  • Quantity demanded is the __________ of goods and services purchased at a given price.

    Amount


Homework

HOMEWORK

  • Demand Homework #1

    • Plot and label the demand curve

    • Fill in the blanks, or choose the appropriate answer provided


  • Login