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