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Changes in demand and

Computaion
Vida Narag-Banguibang
Changes in demand
 Refer to the changes in the determinants of demand like
income and etc. The increase in population also increases
demand.
D2
D3 D1
Shifting of the demand curve to
the right means there is an
increase in demand while
shifting to the left means there is
a decrease in the demand.
Changes in Quantity Demanded
 Refers to the change in price. The movement from one
point to another point is brought by the change in price.
This means that the demand curve does not change its
position rather it is the price.

Changes in quantity demanded


showing the movement from
one point to another on the
D
same demand curve which
remains constant.
Demand function
 A mathematical equation of 2 variables:
 QD dependent variable
 P independent variable
 Quantity demanded changes as the price change.
Demand Schedule
 Is a table showing the number of products a certain
consumer is willing to buy.
 Demand function is a mathematical equation as mentioned
earlier.
Qd= 200 – 10P
QD P
20
18
15

So we will just equate. Just follow the given demand formula.


Qd= 200 – 10P
Qd= 200 – 10(20) which is the indicated price on the table
Qd= 200 – 200 (10 multiply by 20 is equal to 200)
Qd= 0

So meaninf if a certain lollipop costs 20 pesos the consumer is not willing ot buy since
the demand is zero.
Qd= 200 – 10P
QD P
20
18
15

So how if if we are going to lower the price at 18.


Then let us equate again.
Qd= 200 – 10P
Qd= 200 – 10(18)
Qd= 200 – 180
Qd= 20
The consumer is willing to buy 20 pcs if the price is at 18.
Qd= 200 – 10P
QD P
(1) 20
(2) 18
(3) 15
100 (4)
150 (5)

So how if if we are going to lower the price at 15.


Again just follw the equation
Qd= 200-10 P
Qd= 200-10(15)
Qd= 200-150
Qd= 50
Qd= 200 – 10P
QD P
(1) 20
(2) 18
(3) 15
40 (4)
160 (5)

This time given is the Qd and we have to find the price.


Again all we have to do is follow the equation.

QD= 200-10P
40= 200-10P
40-200=-10P
-160= -10 P
Balance both sides od the equation by -10 to get P
-160/-10= -10/-10 P
16= P
Qd= 200 – 10P
QD P
(1) 20
(2) 18
(3) 15
40 (4)
100 (5)

16 is the price.
If you want to check it is correct just follow again the equation.
Qd= 200-10P
Qd= 200-10(16)
Qd= 200-160
Qd = 40 ( if you look on the table 40 is the given Qd, meaning you have a correct
price.)
You had the price by solving and not just trial and error.
Qd= 200 – 10P
QD P
(1) 20
(2) 18
(3) 15
40 (4)
100 (5) ?

Exercise 1. Using the table above get the price if QD=


100
Show your solution.
Then graph the given table...

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