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Introduction to Demand
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Demand is a central concept to the study of economics
Definition of Demand
The demand for a good or service is the total quantity of a good which will be purchased at any given price over a specific time period
The Law of Demand
As the price of a good rises, demand for the good will fall
The Demand Equation
D (x) = F[ P(x), POG, Y, T, E)
Where
D(x) = Demand for Good X
P(x) = Price of Good X
POG = Price of Other Goods
Y = Income
T = Tastes
E = Expectations
The Demand Curve
The demand curve slopes downwards from left to right, indicating that higher prices lead to less quantity demanded, and the lower the price, the greater the quantity demanded, in keeping with the law of demand.
Introduction to Demand
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- This note will give you an introduction to the economic concept of demand
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- eleanor.adamandi
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- Created by jackexamtime · Dec 16, 2013
- Copied by eleanor.adamandi · Dec 16, 2013
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