Chapter 3 Demand

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matt

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Wants vs. Demand ,[object Object],[object Object]

Demand ,[object Object],[object Object],[object Object],[object Object],[object Object]

How to Graph Demand: ,[object Object],Price (P) Quantity (Q) Demand (D)

What are considerations of demand? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Elasticity of Demand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Affects Elasticity? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Price Effect vs. Change in Demand ,[object Object],[object Object],[object Object],[object Object],[object Object]

A Demand Curve Shift P Q D 1 D 2 D 3 D 1 = Original Demand D 2 = Increase in Demand D 3 = Decrease in Demand

What Causes A Demand Shift? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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 It is a stream of social sciences and commerce.  It is a study of production, consumption, distribution and regulation of flow of goods and services in an economy.  It has a direct relation with money.  It studies the economic aspect of goods and services provided in the economy.  It is a wider concept and hence affects the overall conditions of the economy.  It has two major segments: micro and macro. It is derived from Greek word ‘Mikros’.  It creates efficiency and smoothens up the process of final consumption of goods and services.  It tries to understand the problems that occur while producing, distributing and consuming a product.  It deepens our understanding.  Consumption is a broader term and it is the essence of economics. Economists generally consider consumption to be the final purpose of economic activity, hence consumption per person is a central measure of an economy’s productive success.  Consumption in economics means utilization of a product or a commodity and to derive benefits from the same. The utility of a product will help us in satisfying our needs and hence it is consumption.  Consumption can be defined in different ways, but is usually best described as the final purchase of goods and services by individuals. The purchase of a new pair of shoes, a burger at the fast food restaurant, or the service of getting your house cleaned are all examples of consumption.  It is a state of maximum satisfaction from a consumption.  A producer will obtain the stage of equilibrium when he will get maximum profit from his production.  In economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change.  Equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case refers to a condition where a market price is established through competition.  This price is often called the competitive price or market clearing price and will tend not to change unless demand or supply changes and the quantity is called "competitive quantity" or market clearing quantity.

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Chapter 3 Demand

1. Chapter 3: Demand

9. A Demand Curve Shift P Q D 1 D 2 D 3 D 1 = Original Demand D 2 = Increase in Demand D 3 = Decrease in Demand

10.

Chapter 3 Demand

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