What%20is%20Demand?

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What is Demand?

• Chapter 4 Section 1

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• Demand- the desire, ability, and willingness to
  buy a product.

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• An individual demand curve illustrates how the
  quantity that a person will demand varies
  depending on the price of a good or service.

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• Economists analyze demand by listing prices and
  desired quantities in a demand schedule (chart).
• it forms a demand curve with a downward slope.

D(demand) qd Schedule P
10 0
8 1
4 2
1 3
0 4
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• The Law of Demand states that the quantity
  demanded of a good or service varies inversely
  with its price.

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• A market demand curve illustrates how the
  quantity that all interested persons (the market)
  will demand varies depending on the price of a
  good or service.

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• Marginal utility- extra usefulness or
  satisfaction a person receives from getting or
  using one more unit of a product.

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• diminishing marginal utility-the satisfaction we
  gain from buying a product lessens as we buy more
  of the same product.