Demand

Demand

Types of Demand
1. Individual Demand
  1. Qty.s of a good one consumer will buy at each price
2. Market Demand
  1. Qty.s of a good all consumers in market are willing to buy at each price
3. Demand Schedule
  1. Table showing different qty.s demanded for a good at various market prices at any given time
Other Types of Demand
1. Joint Demand
  1. Eg. Phone + Charger
2. Effective Demand
  1. Must be willing and able to pay price set by supplier
3. Derived Demand
  1. Not for it's own sake but for manufacturing another
    1. Eg. Timber for Chairs
4. Composite Demand
  1. Good has number of uses
    1. Eg. Sugar
Law of Demand
1. Price Down = Demand Up
Exeptions to Law of Demand
1. Addictive Goods
2. Snob Goods
3. Giffen Goods
  1. A rise in price causes more demanded as people will have less income to spend on other types of goods
4. Expectations
  1. If buyers think price will be higher in the future, demand will be higher
Factors Affecting Demand for a Good
1. Expectations
2. Complementary Goods
  1. Used Jointly
    1. Eg. Bread and Butter
3. Substitute Goods
  1. Alternatives
    1. Coke or Pepsi
4. Level of Income
  1. Normal Goods
  2. Inferior Goods
5. Unplanned Factors
6. Consumer Tastes
7. Government Regulations
Demand Function:
1. Dx = f(Px, Pog, Y, E, T, U, G)
Curves: Downward Sloping, left to right
1. Movement Along Demand Curve
  1. £/$/€
2. Shift in Demand Curve
  1. Caused by factors other than price

Resource summary

	Created by Niamh Browne over 8 years ago