Download The Demand Curve and The Demand Schedule

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A table showing how much of a good or
service consumers will want to buy at
different prices
See pg. 50; Figure 5.1
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Demand Curve – A graphical representation
of the demand schedule
Quantity Demanded – The actual amount
consumers are willing to purchase at some
specific price
Change in Demanded – Due to some
circumstance (determinant) there is an
increase in quantity demanded or decrease in
quantity demanded, creating a new curve.
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Change in quantity demanded – Due to price,
there is an increase or decrease in quantity
demanded.
Change in quantity demanded results in a
movement along the demand curve.
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Changes in Prices of related goods or services
– substitutes or complements
Change in Income
◦ Normal Goods, Inferior Goods
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Changes in Taste (preferences) – Advertising,
fads, beliefs, cultural shifts, etc.
Change in Expectations – Wait for seasonal
sales, If you hear a price is going up,
consumers tend to rush out and purchase it
before the price goes up.
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Change in the Number of Consumers –
Growing population.