1.2.1 Demand

• Demand is the quantity of a product or service that consumers are both willing and able to purchase at a specific price
• Consumers must be willing to purchase a product or service, which means they must have the necessary financial ability
• The demand curve slopes downward, indicating that as the price decreases, the quantity demanded increases.
• What does Qd represent in the demand equation?

  Quantity demanded
• Demand refers to the specific amount consumers are willing and able to buy at a particular price.

  False
• Match the concept with its description:

  Demand ↔️ Quantity consumers are willing and able to buy at various price levels

  Quantity Demanded ↔️ Specific amount consumers are willing and able to buy at a particular price
• The law of demand states that as the price of a product increases, the quantity demanded decreases, and vice versa.
• Summarize the relationship between price and quantity demanded according to the law of demand:

  1️⃣ Price increases

  2️⃣ Quantity demanded decreases

  3️⃣ Price decreases

  4️⃣ Quantity demanded increases
• What happens to the quantity demanded for coffee if the price increases from $3 to $5 per cup?

  It decreases
• The demand curve graphically represents the relationship between price and quantity
• The relationship between price and quantity demanded is expressed as $Qd =$$f(P)$, where Qd is the quantity demanded and P is the price
• Match the aspect with its corresponding description:

  Definition ↔️ Total quantity consumers are willing and able to buy at various price levels

  Curve ↔️ Represented by the demand curve
• What is the quantity demanded for smartphones if the price is $500?

  The specific amount sold
• Demand refers to the quantity of a product or service that consumers are both willing and able
• The demand curve typically slopes downward.
• What does Qd represent in the equation $Qd =$$f(P)$?


  Quantity Demanded
• The quantity demanded is the specific amount consumers are willing and able to buy at a particular price
• The demand curve shows the specific amount consumers are willing and able to buy at a particular price.

  False
• Demand refers to the quantity of a product or service that consumers are both willing and able
• The demand curve is represented by a point on the graph.

  False
• What is the law of demand?

  Inverse relationship between price and quantity demanded
• As the price increases, the quantity demanded decreases
• The law of demand applies only when all other factors remain constant.
• What does P represent in the equation Qd = f(P)</latex>?

  Price
• Match the effect of price changes on quantity demanded:

  Price Increases ↔️ Quantity Demanded Decreases

  Price Decreases ↔️ Quantity Demanded Increases
• What are the factors summarized in the equation Qd = f(P, Y, Pr, E, D, S)</latex>?

  Price, Income, Related Goods, Expectations, Demographics, Seasonality
• Consumer income is represented by the variable Y
• Consumer expectations can influence demand.
• Match the factor with its effect on demand:

  Price ↔️ Inverse Relationship

  Consumer Income ↔️ Direct Relationship

  Seasonality ↔️ Periodic Changes
• What is a movement along the demand curve caused by?

  Change in price
• A shift of the demand curve is caused by factors other than price
• A shift of the demand curve moves the entire curve left or right.
• What equation represents a movement along the demand curve?

  $Qd =$$f(P)$
• Demand refers to the quantity consumers are willing and able to purchase at a specific price.
• What are the key components of demand?

  Willingness and Ability
• The demand curve slopes downward because as price decreases, the quantity demanded increases.
• The law of demand states that as price increases, the quantity demanded decreases
• What is the relationship between price and quantity demanded?

  Inverse
• The inverse relationship between price and quantity demanded applies when other factors remain constant.
• $Qd$ in the formula $Qd =$$f(P)$ represents the quantity demanded.