2.1 Demand

• Demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period, ceteris paribus.
• The demand curve is downward sloping.
• The law of demand is the principle that states that as the price of a product decreases, the quantity demanded of it will increase, ceteris paribus.
• Individual demand is the demand of one person or consumer for a product.
• Market demand is the sum of all individual demands for a product at every price.
• Non-price determinants of demand:

  • income
  • tastes and preferences
  • future price expectations
  • price of related products (substitutes and complements)
  • number of consumers