Market Demand

The demand for a good

or service is defined as:
Quantities of a good or
service that people are
ready, willing and able to
buy at various prices within
some given time period.
(Other factors besides price
held constant)

Market Demand
Ready implies that
consumers are prepared

to buy a good or service

both because they are:
Willing: Consumers have a
preference for it.
Able: Consumers have the
income to support this
preference.



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Market Demand
Market demand is the sum of all
the individual
demands.
Individuals may have
distinct demand curves, and

they sum to the overall

demand in the market.
Example: demand for pizza



Market Demand
There is an inverse
relationship between price
and the quantity demanded
of a good or service.
This is called the Law of
Demand.

Thus, the demand curve is

downward sloping.

Market Demand
Graphical
Representation of
Demand
Algebraic
Representation of
Demand
Qd=700-100P