Demand

Prepared by: Cleoffer Tolentino

Learning Targets

A. Define what is demand as a concept of economics.

B. Identify important concepts related to demand.
C. Solve and interpret for the slope of demand.
D. Explain the law of demand
E. Explain how non-price determinants that affect demand.
Demand
Refers to the ability and willingness of consumers to buy goods and services at a
given price and at a specific span of time.

Quantity Demanded- refers to the amount of goods and services that consumers
are willing to buy at a given price and at a specific span of time.
Concepts Related to Demand

Demand Schedule – a tabular presentation of quantity demanded at a given price

Examples:

Price Quantity Price Quantity

Demanded Demanded
500 50
10 200
20 150 400 80
Demand Curve – a graphical representation of quantity demanded at a given price
and at a specific span of time.

Example:

Photo taken from: https://www.google.com/search?

sca_esv=582051065&sxsrf=AM9HkKlmggtsVedbDhpZKMTj19kvCRdbkg:1699917983799&q=demand+curve&tbm=isch&source=lnms&sa=X&ved=2ahUKEwijg8n8j
8KCAxUAWGwGHSZKAnkQ0pQJegQICRAB&biw=1350&bih=650&dpr=1#imgrc=G886ufQihDBQZM
Slope of Demand

Qd
Slope = -----------------------------
P

Qd2-Qd1
= -----------------------------
P2-P1

wherein:
- Delta/Change
P1- Price 1
P2- Price 2
Qd1- Quantity Demanded 1
Qd2- Quantity Demanded 2
Law of Demand

States that “for every increase in price of goods and services, quantity demanded
for this products will decrease or vice-versa. (CETERIS PARIBUS)

P ↑ Qd ↓ : P ↓ Qd ↑

The relationship of Demand and Price is inverse.

Non-Price Determinants

Income

Tastes and Preferences

Price of related goods

Change in the population

Expectations