Demand

Ms. Ross

What is demand?

The amount of a good or service people are willing and able to buy at various prices in a given time period, all other things remaining the same.

Demand is represented by the entire demand schedule and curve.

What is quantity demanded?

The amount of a good or service people are willing and able to buy at a particular price, all other things remaining the same.

What is the law of demand?

The relationship between price and quantity demanded is inverse.

As price goes up, quantity demanded goes down.

As price goes down, quantity demanded goes up.

Change in Quantity Demanded

A change in quantity demanded indicates a movement along the curve. The only thing that has changed is the price of the good or service.

Think of the demand curve as a street – you can only move up and down the street when the price changes.