. Demand is the willingness and ability to buy a product
. Supply is the willingness and ability to sell a product.
. Demand & price are inversely related while supply & price are directly
related.
. Market demand is the total demand of a product.
. Market supply is the total supply of a product.
1) Demand Curve
. Supply is the willingness and ability to sell a product.
. Demand & price are inversely related while supply & price are directly
related.
. Market demand is the total demand of a product.
. Market supply is the total supply of a product.
1) Demand Curve
a) Extension & contraction in demand Extension in demand is the increase in quantity demanded and contraction in demand is the decrease inquantity demanded.
b) Increase & decrease in demand Increase in demand is the rise in demand at a given price, causing the curve to shift to the right. Decrease in demand is the fall in demand at a given price, causing the curve to shift to the left.
- Causes of change in demand:
1) Changes in income
2) Changes is price of a substitute
3) Advertising campaigns
4) Changes in population
5) Changes in taste and fashion
1) Changes in income
2) Changes is price of a substitute
3) Advertising campaigns
4) Changes in population
5) Changes in taste and fashion