02-6 0 The Demand Curve ·The Demand Curve The demand curve shows how much of a good consumers are willing to buy as the price per unit changes holding non-price factors constant. This price-quantity relationship can be shown by the equation: 2D=QD(P Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 02-6 The Demand Curve • The Demand Curve – The demand curve shows how much of a good consumers are willing to buy as the price per unit changes holding non-price factors constant. – This price-quantity relationship can be shown by the equation: QD QD(P)
1907 02-7 The Demand Curve Price (per unit) The demand curve slopes downward demonstrating that consumers are willing to buy more at a lower price as the product becomes relatively cheaper and the consumer's real income increases. Quantity Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 02-7 D The demand curve slopes downward demonstrating that consumers are willing to buy more at a lower price as the product becomes relatively cheaper and the consumer’s real income increases. Quantity Price ($ per unit) The Demand Curve
0 Law of Demand Quantity demanded is the amount of a good that buyers are willing and able to purchase. ·Law of Demand -The law of demand (the law of downward-sloping demandstates that,other things equal,the quantity demanded of a good falls when the price of the good rises. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Law of Demand • Quantity demanded is the amount of a good that buyers are willing and able to purchase. • Law of Demand – The law of demand (the law of downward-sloping demand)states that, other things equal, the quantity demanded of a good falls when the price of the good rises
190 02-9 砂 Market Demand versus Individual Demand Market demand refers to the sum of all individual demands for a particular good or service. Graphically,individual demand curves are summed horizontally to obtain the market demand curve. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 02-9 Market Demand versus Individual Demand • Market demand refers to the sum of all individual demands for a particular good or service. • Graphically, individual demand curves are summed horizontally to obtain the market demand curve
10 Movement along the demand curve Change in Quantity Demanded -Movement along the demand curve -Caused by a change in the price of the product. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Movement along the demand curve • Change in Quantity Demanded – Movement along the demand curve. – Caused by a change in the price of the product