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```Objective—Students will
understand the concept of
DEMAND in economics and
the idea of the LAW OF
DEMAND and be able to plot a
basic DEMAND CURVE.
DEMAND:
• The quantities of a product
which consumers are willing
to purchase at various
prices.
• If you add the words “…and able…”
between “…willing…” and “…to buy…”, so
that it reads…”…Willing and able to
buy…”, now you have something called
• Effective Demand.
• (I might be willing to buy a certain car,
but…am I able?)
LAW OF DEMAND:
• As the price of the product (P)
goes down, the quantity (Q) of
the product which consumers
are willing to purchase goes
up, and vice versa.
Or..as a memory aid…
hExY&ob=av2e
• OR..in symbols..
Q^
P ^ Q v, P v
• This shows an inverse relationship of P
to Q.
• If the price changes, the law of demand
says that the quantity will change. This
is known as the Price Effect. It is NOT a
change in demand to have the quantity
change when the price changes, it is
merely a movement along the curve.
Let’s try an experiment
• Assuming you are a “normal” group of
“consumers”…if you are asked what you
would be willing to pay for a normal
consumer item, you might respond with
data…
• …and the data could be placed on a
“Demand Schedule”…
P I Q
• Objective—Students will understand
the concept of DEMAND in economics
and the idea of the LAW OF DEMAND
and be able to plot a basic DEMAND
CURVE.
```