Chapter 5

• Demand

  various amounts of a product that consumers are willing to purchase at each of a series of possible prices during a specified period of time
• Demand shows the quantities of a product that will be purchased at various possible prices, other things equal.
• Demand schedule shows

  relationship between the various prices of the product and the quantity of the product a particular consumer would be willing and able to purchase at each of these prices
• Law of demand

  Ceteris paribus, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls: there is a negative/inverse relationship between quantity demanded and price.
• what does price do to the graph

  translates in movement up or down the demand curve.
• what are the determinants of demand /demand shifters

  1. Consumers’ tastes
  2. Number of buyers in market
  3. Income of consumers
  4. Price of related goods- (substitute good, complementary good, unrelated goods)
  5. Consumer expectations
  6. Population growth