Demand and Supply Explained- Macro Topic 1.4 (Micro Topic 2.1)

Mr. Clifford introduces the concept of demand in economics, focusing on the law of demand, which states an inverse relationship between price and quantity demanded. He explains the demand curve and reasons for its downward slope, including substitution and income effects, and diminishing marginal utility. The video also covers factors that shift the demand curve, such as tastes, number of consumers, and income. Mr. Clifford differentiates between changes in quantity demanded and demand, emphasizing the role of price and other determinants. The video concludes with practical advice on milk consumption.

What is the law of demand and how does it relate to price and quantity demanded?

Explain the substitution effect and how it impacts consumer behavior when the price of milk changes.

Describe the income effect and its influence on the demand for milk when prices decrease.

What is the law of diminishing marginal utility and how does it relate to consumer satisfaction?

Identify and explain the five shifters of demand.

How do changes in consumer expectations affect the demand for milk?

Differentiate between a change in quantity demanded and a change in demand.