Download change in the quantity demanded

Bell Work
• Get out your notes
• Answer the following in your notes:
• What is something that can cause
demand for a product to change?
• Does demand for all products change
from time to time?
Change in Demand
Change in the Quantity
Demanded
• When only the price changes and all
else remains constant, there is a
change in the quantity demanded
• A change in quantity demanded is a
movement along the original demand
curve
Change in the Quantity Demanded
Change in Demand
• There are several factors that can
cause the demand curve to shift
• These are all factors other than price
that result in an entirely new demand
curve
Change in Demand
Change in Demand
• Consumer income
• Consumer Tastes
• Prices of related goods
• Substitutes
• Complements
• Expectations
• Number of Consumers
Change in Demand
• All factors that change demand and result in a
new demand curve can increase or decrease
demand
• When demand increases the curve shifts right
• When demand decreases the curve shifts left
• The demand curve never shifts up or down
Change in Demand
Demand Elasticity
• Demand Elasticity is the extent to which a
change in price causes a change in the
demand for a product
• Elastic Demand – change in price creates a
large change in demand
• Inelastic Demand – change in price does
not affect demand in a significant way
Demand Elasticity
• Can the purchase be delayed?
• If the purchase can be delayed the product is
generally elastic
• Are adequate substitutes available?
• When substitutes are available the product is
generally elastic
• Does the purchase use a large portion of income?
• When larger purchases are concerned, products
are very elastic
Questions from Bell Work
• What is something that can cause
demand for a product to change?
Explain in detail
• Does demand for all products change
from time to time? Explain in detail