Demand

• Demand


  Quantity of a particular good/service consumers are willing to and are able to purchase at various price levels at a given point in time
• Law of Demand

  States that as price increases, quantity demanded will fall and vice versa
• Individual Demand

  Demand of each individual consumer for a particular good/service
• Market Demand


  Demand by all consumers for a particular good/service.
• Contraction of Demand


  Upward movement along demand curve. Increase in price causes a decrease in quantity demanded.
• Expansion of Demand


  Downward movement along demand curve. Decrease in price causes an increase in quantity demanded.
• Increase in Demand


  Demand curve shifts to the right. Consumers are willing to buy more of the product.
• Decrease in Demand


  Shifts to the left. Consumers are willing to buy less
• Ceteris Paribus Effect


  Focuses on one factor at a time when analysing the response of demand to a change in price. Assume all other factors affecting demand are constant.