1 / 13

WARM-UP

WARM-UP. What is demand? What products or things are most “in-demand” to you and why? List 5. Chapter 4: Demand. Section 1: What is Demand?. Main Idea:. Demand is a willingness to buy a product at a particular price. Desire.

jalen
Download Presentation

WARM-UP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. WARM-UP What is demand? What products or things are most “in-demand” to you and why? List 5.

  2. Chapter 4:Demand Section 1: What is Demand?

  3. Main Idea: Demand is a willingness to buy a product at a particular price.

  4. Desire • People sometimes think of demand as the desire to have or to own a certain product • In this sense, anyone who would like to own a $10,000 HD 3D TV could be said to “demand” one

  5. Desire is not enough to be counted in the marketplace • Demand—the desire, ability, and willingness to buy a product

  6. Microeconomics – area of economics that deal with behavior and decision making by small units, such as individuals and firms. • Microeconomic concepts help explain: • How prices are determined • How individual economic decisions are made

  7. The Law of Demand • TheLaw of Demand states that the quantity demanded of a good or service varies inversely with its price. • When price goes up, the quantity demanded goes down • When price goes down, the quantity demanded goes up

  8. The Graph Background • X Axis: Always Quantity • Y Axis: Always Price PRICE Y AXIS QUANTITY X AXIS

  9. Demand schedule: listing showing the quantity demanded at all possible prices that might prevail in the market at a given time

  10. Demand curve: graph showing the quantity demanded at each and every possible price that might prevail in the market at any given time

  11. A market demand curve illustrates how the quantity that all interested persons (the market) will demand varies depending on the price of a good or service.

  12. Demand and Marginal Utility • Marginal utility is the extra usefulness or satisfaction a person receives from getting or using one more unit of a product • Diminishing marginal utility: the satisfaction we gain from buying a product lessens as we buy more of the same product.

More Related