Shifts & movements in demand

• Quantity consumers are willing & able to pay for goods and services
• efficient demand

  the willingness and ability of consumers to purchase goods at different prices
• Joint / complementary demand

  when demand for one good or service is closely linked to another
• Derived demand

  When demand for one product drives demand for another
• Composite demand

  when a good is demanded for more than one use e.g milk I can be used as a drink, in baking, yogurt
• Law of demand

  • Demand increases when price falls
  • Demand falls when price increases
• When and Why do movements along the demand curve occur

  Changes in price lead to movements on the demand curve

  • Increase in price leads to contraction in demand
  • Fall in price leads to a extension in demand

  
• When and why does the demand curve shift ?


  The demand curve shifts when there is a change in factors such as real income, prices of related goods, consumer tastes and preferences, population size and structure , Interest rates, laws
• 
When and why does the demand curve shift ?



  The demand curve shifts occur when there is a change non price related factors such as :

  real income, price of related goods, consumer tastes and preferences, population size and structure, interest rates, laws