LO:
a) The distinction between movements along a demand curve and shifts of a demand curve
b) The factors that may cause a shift in the demand curve (the conditions of demand)
c) The concept of diminishing marginal utility and how this influences the shape of the demand curve
a) The distinction between movements along a demand curve and shifts of a demand curve
b) The factors that may cause a shift in the demand curve (the conditions of demand)
c) The concept of diminishing marginal utility and how this influences the shape of the demand curve
a) The distinction between movements along a demand curve and shifts of a demand curve
b) The factors that may cause a shift in the demand curve (the conditions of demand) Law of demand states as prices increase, quantity demanded decreases. Exceptions include Veblen and Giffen goods, but these are not required for the exam.
Downward sloping demand curve due to:
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How much would you pay for a kebab?
News article: http://metro.co.uk/2011/06/02/worlds-most-expensive-kebab-is-750-and-contains-saffron-and-champagne-30634/
Who would like a chocolate bar? How about 10?KEY TERMS
Demand: the quantity of a good or service that consumers choose to buy at any possible price in a given period. Demand curve: shows the relationship between price and quantity demanded. It slopes downwards from left to right because as price falls, quantity demanded increases. Diminishing marginal utility: where an individual gains less additional utility from consuming a product the more of it is consumed Utility: happiness/fulfillment |
Activity: What factors do you think would influence demand for goods and services? Use the pictures below to help you.
A change in price causes a MOVEMENT ALONG the demand curve