Unit 1 : Demand

Demand  - the quantity that people are willing and able to buy at various prices .

 The law of  Demand  - there is a inverse relationship between price and quantity demanded .

what causes a change in quantity demanded ?△ in price

 Determinants 

  1. △ in # of buyers ( population )
  2. △ in buyer's taste ( achievement / preferences )
  3. △ in income - inferior goods , normal goods
  4. △ in the price of related goods - substitute goods , complimentary goods 
  5. △ in exceptions ( future )
  inferior goods - goods that buyers buy less of when their income rises
  normal goods - goods that buyer buy more of when their income rises 

 substitute goods - goods that serve roughly the same purposes ( coke, Pepsi ) 
 complementary goods - goods that other consume together ( cereal & milk )

 Increase in demand = curve shift right ; price increase quantity decrease

Decrease in demand = curve shift left ; price decrease quantity increase
Image result for economic demand graph

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