Micro Economics

The Defintion of demand

The Key terms

1-The Definition
2-The law of demand
3-Demand curve for goods and services
4-Reasons for a shift in the demand curve
5-factors affecting demand of goods and services
6-interaction between demand and supply
? What the meaning of the demand

The term demand is used to refer to the amount of some good or service consumers 

are willing and able to buy at each price level for such good or service. Demand is 

fundamentally based on people needs and if you have no need for something, you 

won›t buy it at all. Demand is also based on the ability to pay the market price of such 

,good or service. If you cannot pay for it, you have no effective demand. Based on this 

.definition, none income person probably has no effective demand for a house 

What a buyer pays for a unit of the specific good or service is called Price. The total 

number of units that consumers would purchase at that price is called 

The Law Of Demand

The Law Of Demand says that a decrease in a good's own price will result in an
increase in, holding constant all the other determinants of demand.

The Law Of Demand says that:

"demand curves are negatively sloped ”
The demand curve for goods and services
We can demonstrate an example from the market for gasoline in a table or
a graph.
Economist call a table that shows the quantity demanded at each price,
such as Table
2.1 below, demand schedule. In this case we measure price in Egyptian
Pound per litre
of gasoline. We measure the quantity demanded in millions of litres over
some time
period (for example, per day or month or per year) and over some
geographic area
(like a city or a country).
On the other hand, a demand curve shows the relationship between price
(p) and
quantity demanded on a graph like Figure 2.1, usually drawn with quantity
(Q) on the
horizontal axis and the price (P) per litre on the vertical axis. See table 2.1
and figure
2.1 below for Gasoline demand schedule and demand curve of a
hypothetical example
The example
Quantity Demanded (millions of Gasoline Price (Egyptian Pound per
)Litres/period of time )Litre
1000 3

900 3.5

800 4

700 4.5

600 5

500 5.5

400 6

300 6.5
The example
Reasons to shifting on demand curve

Income

Trends and tastes

Price of related goods

Expectations

Size and Composition of the Population

Factors affecting on demand generally
Price

Tastes & preferences

Price of complements

Price of substitutes

Income

Expectation

Population