Demand

Notes by Konny

Demand Schedule: Table showing the relationship between price and quantity. The demand schedule is used by economists to see the amount of a product that a consumer would be willing to buy from a wide variety of prices.

Law of Demand: states that consumers would buy more of a product at a lower price and less of a product at a higher price, a simple observation, such as a sale proves this law to be correct. For example, when stores have sales people tend to buy more of everything.

Market Demand Curve: The Demand Schedule can be illustrated graphically with connected dots to form the curve. A demand schedule and the demand curve show the same information differently. One uses a table while the other in the form of a graph.

Changes in Demand: Changes in demand occurs when there is a shift of the demand curve as people buy different amounts at every price. If the shift is to the right it shows an increase in demand; to the left a decrease.