Microeconomics
Basic Demand and supply analysis
Guiding questions:
• What is the distinction between changes in quantity of demand and quantity
demanded?
• Does the law of supply control prices?
• Does scarcity be eliminated by pricing?
Law of Demand
The concept that there is an opposite relationship between prices for goods and
services and the quantity the consumers are willing to purchase in a specific time.
It can be shown as a downward sloping curve due to the inverse relationship of
variables, say prices and quantity.
Law of Demand: Individual buyer’s curve
, Law of Demand: Market demand curve
Law of Demand: Market demand curve
Changes in demand vs quantity demanded
Change in demand – it’s an increase or decrease in the quantity demanded at each
possible price.
Change in quantity demanded – a movement between points along a stationary
demand curve.
Basic Demand and supply analysis
Guiding questions:
• What is the distinction between changes in quantity of demand and quantity
demanded?
• Does the law of supply control prices?
• Does scarcity be eliminated by pricing?
Law of Demand
The concept that there is an opposite relationship between prices for goods and
services and the quantity the consumers are willing to purchase in a specific time.
It can be shown as a downward sloping curve due to the inverse relationship of
variables, say prices and quantity.
Law of Demand: Individual buyer’s curve
, Law of Demand: Market demand curve
Law of Demand: Market demand curve
Changes in demand vs quantity demanded
Change in demand – it’s an increase or decrease in the quantity demanded at each
possible price.
Change in quantity demanded – a movement between points along a stationary
demand curve.
