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Demand
Prepared:
Nikolashkina Anna 11A
Teacher of Economics
Rafalskaya Irina
Demand
• Demand- the desire and ability of consumers
to buy a certain quantity of goods or services
at a specified price within a specified period of
time.
The level of demand
• The level of demand - the quantity of goods
that consumers want and can to buy at a
given price.
The law of demand.
• The law of demand: the less the price of a
product, the more consumers want to buy it,
and conversely, the higher the price of goods,
the less the consumer wants to buy it.
Change in demand
Non-price factors:
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climatic or seasonal changes;
changes in income;
changes in style, taste, habits;
prospective expectations;
the price of goods - substitutes;
Change in demand
If demand increases then the demand curve
shifts to the right (D1).
If demand decreases, the demand curve shifts
to the left (D2).
Elasticity
• Elasticity describes effect of price changes on
the quantity demanded.
• If the effect of price changes is relatively small,
the demand for these goods is inelastic.
• If demand is elastic, small changes in price can
have significant changes in the demand for
goods.
Causes of inelastic demand
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essential goods
goods that are difficult to change
low cost goods
Hopeless situation for the consumer