Demand

Demand – The quantity of a good or service that a consumer is willing and able to purchase at various prices at a certain time.

Law of Demand – as price increases, quantity demanded decreases, ceteris paribus and vice versa.

Demand Schedule – a table showing the quantity of a commodity consumers are willing and able to buy at a range of prices.

Demand Curve – a graph showing the quantity of a commodity consumers are willing and able to buy at a range of prices.

Market Demand – the total demand that all the individual consumers in the market are willing and able to buy at various prices.

What changes demand? (Non-price factors of Demand)

• Taste – things we like. They may be influenced by fashion, values, media, weather, seasons.

• Income – the money we gain from labour. When we earn more income we are more able to purchase goods and services, therefore we demand more normal goods, and demand a lesser amount of inferior goods.

• Complements – a good which is used in conjunction with another good

• Substitutes – a good which can be used in place/instead of another.