Classwork Demand
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This document provides an introduction to demand, including key terms and concepts: 1) Demand is defined as the willingness and ability to pay for a certain quantity of a good or service. Quantity demanded refers to the amount consumers are willing and able to purchase at a given price. 2) Ceteris paribus means "all else equal." The law of demand states that, ceteris paribus, quantity demanded increases as price decreases, and decreases as price increases. 3) Movement along a demand curve shows how quantity demanded changes with price, holding all other factors constant. Individual and market demand schedules illustrate the relationship between price and quantity demanded.
Classwork Demand
- 1. Name ________________ Period 3 Score ______ / 20 points February 3, 2010 Class Work: Introduction to DemandDemand: the willingness and ability to pay for a certain quantity of a good or service.Quantity Demanded: the quantity that consumers are willing and able to purchase at a given price.Ceteris paribus: “all else equal”Law of Demand: ceteris paribus, as the price decreases, the quantity demanded increases; and conversely, as the price increases, the quantity demanded decreases.P Qtyd ; P Qtyd Movement Along the Demand Curve: Movement along the Demand Curve indicates a change in the quantity demanded caused by changes in its price.Individual Demand Schedule: Tells what quantity of a good or service a consumer would purchase at each price.The Individual Demand Schedule for Coffee in City of Burlington, VermontCombinationPrice ($)QuantityA$ 3.000B$ 2.501C$ 2.002D$ 1.503E$ 1.004F$ 0.505G$ 0.006Market Demand Schedule: A table that tells the quantity of a good or service that all consumers purchase at each price.The Market Demand Schedule for Coffee in City of Burlington, VermontCombinationPrice ($)QuantityA$ 4.400B$ 2.25380C$ 1.75530D$ 1.50580E$ 1.25630F$ 1.00680G$ 0.75730H$ 0.00880