Laws of Demand

Any place where people come together to buy and sell goods or services:

• Market

• Center

• Demand

• Supply

Demand is...

• The willingness and ability of buyers to purchase at a moment in time.

• The desire and flexibility of buyers to purchase at a moment in time.

• The growth of number of buyers to purchase at a moment in time.

• The will of a consumer to get a good no matter what.

The inverse relationship between the price and demand:

• Law of supply

• Law of demand

• Law of price

• Law of inversity

As someone consumes more of something, the good's utility decreases:

• Diminishing Marginal Utility

• Diminishing Utilitarianism

• Diminishing Functional Utility

• Diminishing Marginal Prices

A demand curve...

• Illustrates a good's demand/price

• Illustrates a consumer's desire for a product.

• Illustrates a good's future viability.

• is unrelated to the price of a product

Which would NOT shift a demand curve to the right?

• Viral marketing campaign

• Increased price of a related good.

• New markets open up.

• Consumer income declines.

A good for which demand rises as income rises and falls as income falls...

• Normal good

• Inferior good

• Neutral good

• Exceptional good

A good for which the demand falls as income rises and rises as income falls...

• Normal good

• Inferior good

• Neutral good

• Exceptional good

A good for which the demand remains unchanged as income rises or falls:

• Normal good

• Inferior good

• Neutral good

• Exceptional good

If a good or service's demand is elastic:

• Demand changes by a larger percentage than price change.

• Demand changes by a smaller percentage than price change.

• Demand remains the same regardless of price.

• Demand is affected by factors other than the price.