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Demand by Mind Map: Demand

1. Law of Demand

1.1. if Prices increases, Quantity demanded decreases

1.2. If Price decreases, Quantity Demanded increases

2. Demand Schedule & Curve

2.1. Demand schedule

2.1.1. a list of the quantities demand at each different price

2.2. Demand curve

2.2.1. a graph of the demand scheduloe

3. Individual & Market Demand

3.1. Market demand is the sum of all individual demand

4. Change in Demand

4.1. Occurs when something other than price changes

4.2. 6 main variables that change demand

4.2.1. Price of related goods

4.2.1.1. Subsitutes

4.2.1.1.1. A good that can be consumed in place of another good

4.2.1.1.2. Demand increases if price of substitute increases

4.2.1.2. Compliments

4.2.1.2.1. A good that is consumed with another good

4.2.1.2.2. Demand decreases if price of compliment increases

4.2.2. Expected future prices

4.2.2.1. If future prices are expected to increase

4.2.2.1.1. Current demand increases

4.2.2.2. If future prices expected to decrease

4.2.2.2.1. Current demand decreases

4.2.3. Income

4.2.3.1. Impact from income changes depend on type of good

4.2.3.1.1. Normal good

4.2.3.1.2. Inferior good

4.2.4. Expected future income

4.2.4.1. If future income expected to increase

4.2.4.1.1. Demand increases

4.2.4.2. If future income expected to decrease

4.2.4.2.1. Demand decreases

4.2.5. Number of buyers

4.2.5.1. More buyers = more demand

4.2.5.2. Less buyers = less demand

4.2.6. Preferences

4.2.6.1. Refers to consumer "tastes"

4.2.6.2. Can change due to better information

4.2.6.2.1. Better info @ hazards of tobacco has

4.2.6.3. Can change due to better technology

4.2.6.3.1. Move from CDs to MP3s

4.3. Shifts the demand curve

5. Change in Quantity Demanded

5.1. Occurs when there is a change in Price

5.2. Movement along the demand curve

6. the relationship between quantity demanded & price