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Karthikeyan A · 2024-10-22T10:10:15.240Z

#economics #demand Introduction to Demand • Demand is the amount of a good/service that a consumer is willing and able to purchase at a given price in a given time period. *If a consumer is willing to purchase a good, but cannot afford to, it is not effective demand. • A demand curve is a graphical representation of the price and quantity demanded (QD) by consumers. * If data were plotted, it would be an actual curve. Economists, however, use straight lines so as to make analysis easier. Individual and market demand • Market demand is the combination of all the individual demand for a good/service. *It is calculated by adding up the individual demand at each price level. The Monthly Market Demand for Newspapers in a Small Village Customer 1 Customer 2 Customer 3 Customer 4 Market Demand 30 15 4 4 53 • Individual and market demand can also be represented graphically. Market demand for children's swimwear in July is the combination of boys and girls demand Diagram analysis • A shop sells both boys and girls swimwear. • In July, at a price of $10, the demand for boys swimwear is 500 units and girls is 400 units. • At a price of $10, the shops market demand during July is 900 units.

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Karthikeyan A

Oct 22

Demand, Price & Quantity

in Karthikeyan

#economics #demand

Introduction to Demand

Demand is the amount of a good/service that a consumer is willing and able to purchase at a given price in a given time period.
*If a consumer is willing to purchase a good, but cannot afford to, it is not effective demand.
A demand curve is a graphical representation of the price and quantity demanded (QD) by consumers.
* If data were plotted, it would be an actual curve. Economists, however, use straight lines so as to make analysis easier.

Individual and market demand

Market demand is the combination of all the individual demand for a good/service.
*It is calculated by adding up the individual demand at each price level.

The Monthly Market Demand for Newspapers in a Small Village
Customer 1 Customer 2 Customer 3 Customer 4 Market Demand
30 15 4 4 53
Individual and market demand can also be represented graphically.

Market demand for children's swimwear in July is the combination of boys and girls demand

Diagram analysis

A shop sells both boys and girls swimwear.
In July, at a price of $10, the demand for boys swimwear is 500 units and girls is 400 units.
At a price of $10, the shops market demand during July is 900 units.

2 comments

Comments (2)

indu marath

Oct 25

What is the difference between a movement along the demand curve and a shift of the demand curve?
How do substitutes and complements affect the demand for a product?
What is the concept of price elasticity of demand and how is it calculated?
How does consumer income influence the demand for normal and inferior goods?
What role do consumer preferences play in determining demand?
How do expectations about future prices affect current demand?

Karthikeyan A

Oct 29

Replying to

Movement along the demand curve is caused by a change in the commodity's price, whereas the shift is caused by a change in one or more factors other than the price. There is a change along the curve with movement in the demand curve.
How do substitutes and complements affect demand? When the price of a substitute increases, the demand for the other good increases. When the price of a complement increases, the demand for the other good decreases.
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.
The demand curve for inferior goods drops as incomes rise while the curve for normal goods rises along with the rise in incomes.
Preferences significantly influence demand as they determine the consumer's willingness to buy a particular product or service. Preferences are a key determinant of demand in economics. They refer to the subjective tastes and likes of consumers, which vary from person to person.
Expectations: - If consumers expect prices to increase in the future they increase their demand today. D curve shifts right. - If consumers expect their income to rise in the future, they increase their spending today, demand increases, D shifts right.