01.03 Demand
Demand Schedules
Demand schedules are used when we list various amounts that people will pay for a certain item
Demand (D): the total amount of a good service that people are willing to buy; "whole curve" Quantity demanded (QD): the amount of a good or service that will be purchased at a particular pricel a point the curve When price changes, only QD changes Demand schedule: a chart that lists how much people will purchase at various prices a change in price will only change quantity demanded, not the whole demand curve. o A shift to the left indicates a decrease in demand. To the right , increases.
TRIBE
Reasons for demand curve to shift T: Tastes and preferences o Many social or cultural factors can suddenly make consumers overall buy or not at every price for a product R: Related goods and services, price of o Consumers will be less willing to buy a good at any price level if its substitutes are cheaper. O Consumers are also willing to buy a good at any price level if it complements another good. (Complement as bought when the other product is bought) I: Income o In normal goods, consumers are more likely to purchase it if their income increases o In inferior goods, consumers are less likely to purchase it if their income increases B: Buyers, number of o More buyer, shift right, o Less buyers, shift left E: Expectations of price o When consumers believe a price will go up, more will be bought O If the price is believed to go down, less will be bought.