ECONOMICS: Demand

• Demand is the number of goods and services that consumers are willing and able to buy at alternative prices at a given period of time.
• Capacity and willingness of a customer to buy define demand.
• Demand function is a mathematical expression of relationship between two variables: quantity demanded (Qd) as dependent variable and price (P) as independent variable.
• Demand schedule is a table showing units of product that consumer is willing and able to buy at alternative prices that shows inverse relationship of quantity demanded and price.
• Demand curve is a graphical representation of quantity demanded and price.
• Law of Demand explains how people react every time price changes in terms of quantities they purchase.
• Law of Demand states that as the price of a good or service increases, quantity of product or services willing to buy decreases and vice versa.
• Market Demand is the combination of all demands of consumers in the market and is not affected if one consumer decreases demand.
• Determinants of Demand include price, population, expectation, income, normal goods, inferior goods, preference, and occasion.
• Change in price can lead to change in quantity demanded.
• Graphical Representation of Change in Demand can be done using a demand curve.
• Elasticity of Demand is the degree of responsiveness of changes in demand for product relative to changes in price.
• Price elasticity is the percentage in quantity demanded of product divided by percentage of price change.
• Inelastic demand occurs when the consumer's response to a price change is less than the change in price and they have no capacity to decrease demand even during a price change.
• Inelastic demand occurs when the product is a necessity and has no ready substitutes.
• Perfectly inelastic demand means that there is no change in the quantity of the product demanded when the price changes.
• Perfect elastic demand is when the demand of the product is completely dependent on the price of the product.
• As the population increases, the number of consumers also increases, thus may the demand of goods and services also increase.
• People may resort to panic-buying if they fear of product shortage and price increase during times of calamity.
• The customer reaction to an expected event or preparation for calamity increases the demand for goods.
• If a consumer receives a high income, they are capable of buying more products, thus increasing demand.
• The preference of a consumer determines the demand for certain products based on their decisions.
• During certain occasions, certain products and services that are related may find an increase in demand.
• When the price of one good or service increases, the demand will decrease.
• An elastic demand is when the change in quantity demanded of a product due to a change in price is more than one percent.
• An inelastic demand is when the change in quantity demanded of a product due to a change in price is less than one percent.
• A unitary demand is when the change in quantity demanded of a product due to a change in price is equal to one percent.
• Perfectly elastic demand means that consumers are not ready to accept any price cane and are willing to buy products at a lower price.
• Decrease in demand can be caused by no occasions to celebrate, price decrease in substitute goods, price increase of complementary goods, decrease in the number of consumers, decrease in income, and less expectations.