Please enable JavaScript.
Coggle requires JavaScript to display documents.
Theory of Demand (Demand Curve (Table 1: Demand schedule for ice cream…
Theory of Demand
Intro
Market forces eg. demand and supply, determine market prices
-
Demand refers to the diff. quantities of a good/service that consumers are willing & able to buy at various prices over a given period of time, ceteris paribus (other things being equal)
Demand Curve
Table 1: Demand schedule for ice cream cones 
Figure 1: Demand curve for coffee
-
Law of Diminishing Marginal Utility: Beyond certain point of consumption, as more units consumed, additional utility derived from successive units:arrow_down: (Total utility still increases) (Last unit= marginal unit)
Law of Demand
Inverse relationship between P and QD of good, cp.
Individual vs. Market Demand
Types of Demand
-
-
-
Substitutes: goods with similar uses, satisfy same want
-