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Demand PDF
Demand PDF
Source: An Individual’s Demand Schedule of Good X (Normala Ismail, 2008,p.44) Source: The Downward Sloping Demand Curve Normala Ismail, 2008, p. 45)
Market Demand Schedule Market Demand Curve
A table showing the quantity A market demand curve shows the price-
demanded for a good by all buyers in quantity relationship of good for all
the market. buyers.
Source: Deriving a Market Demand Schedule and a Market Demand Curve Source: Deriving a Market Demand Schedule and a Market Demand Curve (Roger
(Roger 2011, pg. 59) 2011, pg. 59)
The higher the price of a good, the lesser is the
quantity demanded, and the lower the price, the
more is the quantity demanded, ceteris paribus.
Consumer tastes
When taste (preference) change in favour of a good,
its demand increases ad shift the demand curve to the
right. When tastes for the good decline, demand
decreases causing the demand curve to shift to the left.
Consumer income
Higher consumer income increases demand for most
goods so the demand curve shift to the right. While
lower income decreases demand and shift the demand
curve leftward.
Consumer expectations
Expecting a higher future price or higher future income
increases demand now and so the demand curve for
the good shift rightward. But expecting a lower price or
lower future income decreases demand now and shift
the demand curve leftward.
Prices of related goods
Higher prices for substitutes increase demand for
the related good, and lower prices for substitutes
decrease demand. Demand for substitutes is
directly related with the other goods price.
Festival
Different products will be demanded at different festive seasons.
During Christmas the demand for Christmas tree and christmas
ornaments, etc. will be highly demanded. While during Hari Raya
Aidilfitri, traditional Malay cookies and cakes will be highly
demanded compared to other days. Similarly, the Chinese will
demand mandarin oranges, and other products to heighten the
Chinese New Year spirit.
Exceptional (abnormal)
demand curve slopes upward
from left to right, showing a
positive (direct) relationship
between price and quantity
demanded.
Source: Ritika Muley (2016)
2. Irvin B. Tucker (2008). Economics for Today’s World (5th Ed.). International Student Edition.
Thomson South-Western.
4. Rodney H. Mabry & Holley H. Ulbrich (1989). Introduction to Economic Principles. International
Edition. Singapore. McGraw-Hill.
5. Roger A. Arnold (2011). Principles of Economics, (10th Ed). South-Western . Cengage Learning
International Edition.
6. Amir bin Jusoh. (2012, January 7). Change in quantity demanded (movement) & change in demand (shift).
Retrieved from http://amir-economy.blogspot.my/2012/01/change-in-quantity-demanded-
movement.html
7. Ritika Muley (2016). 6 Main Exceptions to the Law of Demand (With Diagram).
Retrieved from http://www.economicsdiscussion.net/law-of-demand/exceptions/6-main-
exceptions-to-the-law-0f-demand-with-diagram/16675