2.2: Demand

• Demand


  The quantity of a product that consumers are willing and able to buy at various prices over a time period, ceteris paribus
• Relationship between price and quantity demanded

  Inverse, as price goes up quantity demanded goes down and vice versa
• Individual demand


  Demand of an individual consumer
• Market demand


  Sum of all the demand of all consumers
• Joint demand


  Demand for goods that are demanded together
• Competitive demand


  Demand for goods that are in competition with each other
• Composite demand


  Demand for a good that has multiple uses
• Extension of demand


  As price falls, quantity increases
• Contraction in demand


  As price increases, quantity decreases
• Cause of movements along the demand curve

  Change in price
• Cause of shifts in the demand curve

  Determinants of demand
• Determinants of demand


  Substitutes, expectations, population, tastes, income, complementary goods