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    Unit - 3. - Demand - Main Points (SL)

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    Irina
    This document discusses key concepts related to markets and demand. It defines a market as where buyers and sellers come together for economic transactions. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at different prices within a given time period. Effective demand is when consumers can afford their preferred choices, while ineffective demand is when consumers want goods but cannot afford them. The law of demand states that price and quantity demanded move in opposite directions - as price rises, quantity demanded falls and vice versa. Non-price factors that can shift the demand curve include income, prices of related goods, tastes and preferences, future price expectations, and the number of consumers.

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    Unit - 3. - Demand - Main Points (SL)

    Uploaded by

    Irina
    17 views17 pages
    This document discusses key concepts related to markets and demand. It defines a market as where buyers and sellers come together for economic transactions. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at different prices within a given time period. Effective demand is when consumers can afford their preferred choices, while ineffective demand is when consumers want goods but cannot afford them. The law of demand states that price and quantity demanded move in opposite directions - as price rises, quantity demanded falls and vice versa. Non-price factors that can shift the demand curve include income, prices of related goods, tastes and preferences, future price expectations, and the number of consumers.

    Original Description:

    For IB program in economics

    Original Title

    Unit_3._Demand - Main points (SL)

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    This document discusses key concepts related to markets and demand. It defines a market as where buyers and sellers come together for economic transactions. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at different prices within a given time period. Effective demand is when consumers can afford their preferred choices, while ineffective demand is when consumers want goods but cannot afford them. The law of demand states that price and quantity demanded move in opposite directions - as price rises, quantity demanded falls and vice versa. Non-price factors that can shift the demand curve include income, prices of related goods, tastes and preferences, future price expectations, and the number of consumers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    17 views17 pages

    Unit - 3. - Demand - Main Points (SL)

    Uploaded by

    Irina
    This document discusses key concepts related to markets and demand. It defines a market as where buyers and sellers come together for economic transactions. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at different prices within a given time period. Effective demand is when consumers can afford their preferred choices, while ineffective demand is when consumers want goods but cannot afford them. The law of demand states that price and quantity demanded move in opposite directions - as price rises, quantity demanded falls and vice versa. Non-price factors that can shift the demand curve include income, prices of related goods, tastes and preferences, future price expectations, and the number of consumers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Main points!

    09.27.2022
    Irina Kovaleva
    What is a market?
    A market (рынок) is where buyers (покупатели) and
    sellers (продавцы) come together to carry out an
    economic transaction (сделка).
    What is demand?
    Demand (спрос) is the quantity of а good or service that
    consumers are willing (желают) and able (могут) to
    purchase (купить) at different prices in а given time period.
    Effective demand
    Effective demand (платежеспособный спрос) is a type of
    demand where customers display their preferences to the
    market and end up satisfying their choice by making
    payments for them because they can afford it (могут себе
    это позволить) at a given period. 
    Ineffective demand
    In contrast, ineffective demand (неплатежеспособный
    спрос), on the other hand, entails the way customers pose
    their interests in the market but can't afford (не могут себе
    позволить) the goods and services they prefer within a
    given period.
    Law of Demand
    Law of Demand
    •A rise in the price, other
    things remaining the
    same, brings a decrease in
    the quantity demanded
    and a movement up along
    the demand curve.
    •A fall in the price, other
    things remaining the
    same, brings an increase
    in the quantity demanded
    and a movement down
    along the demand curve.
    Movement along the Demand Curve

    •When the price of


    the good changes and
    other things remain
    the same, the
    quantity demanded
    changes and there is
    a movement along
    the demand curve.
    Change in Demand
    • When some influence on buying plans other than the
    price of the good changes, there is a change in demand
    for that good.
    • The quantity of the good that people plan to buy
    changes at each and every price, so there is a new
    demand curve.
    • When demand increases, the demand curve shifts
    rightward.
    • When demand decreases, the demand curve shifts
    leftward.
    Shift of the Demand Curve

    •If the price


    remains the same
    but one of the other
    influences on
    buyers’ plans
    changes, demand
    changes and the
    demand curve
    shifts.
    Non-price determinants of demand
    Shift (сдвиг) of the demand curve

    1. Income.

    2. The price of related goods

    3. Tastes and preferences

    4. Future price expectations

    5. Number of consumers
    1. Income
    Normal and Inferior goods

    How do you know if goods are normal or inferior?


    If the quantity demanded (величина спроса) of a
    product increases with increase in consumer income, the
    product is a normal good and if the quantity demanded
    decreases with increase in income, it is an inferior good.
    2. The price of related goods
    Substitutes and complements
    Complements are goods that are consumed together. 
    Substitutes are goods where you can consume one in place
    of the other.
    3. Tastes (вкусы) and preferences
    (предпочтения)
    If tastes change in favour (вкусы меняются в пользу) of a
    particular product, then more will be demanded

    When tastes change so that а given product becomes less


    popular, then demand will fall.
    4. Future price expectations
    If consumers think that the price of а product will increase in the
    future, then they may well demand more of that product in the
    present (сейчас), taking advantage of the current lower prices.

    If consumers expect the price of а product to fall in the future,


    then they may demand less of that product in the present,
    postponing (откладывая) their demand until а future date.
    5. Number of consumers
    Obviously, if the population of а country is growing, then the
    demand for most products will increase

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