文档介绍：Supply, Demand,
and the Market Process
Full Length Text — Part: 23Chapter:
Micro Only Text — Part: 2 Chapter: 3
Macro Only Text — Part:2 Chapter: 3
To pany “Economics: Private and Public Choice 10th ed.”
James Gwartney, Richard Stroup, Russell Sobel, & David Macpherson
Slides authored and animated by:
James Gwartney, David Macpherson, & Charles Skipton
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Thomson Learning. All rights reserved.
Consumer Choice
and the Law of Demand
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Thomson Learning. All rights reserved.
Law of Demand
• Law of Demand: the inverse relationship between
the price of a good and the quantity consumers are
willing to purchase.
• As price of a good rises, consumers buy less.
• The availability of substitutes (goods with similar
functions) explains this negative relationship.
• Differentiate between need, demand, wants and
desire.
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Thomson Learning. All rights reserved.
Market Demand Schedule
• A market demand schedule is a table that shows
the quantity of a good people will demand at
varying prices.
• Consider the market for cellular phone service.
A market demand schedule lays out the quantity
of cell phone service demanded in the market at
various prices.
• We can graph these points (the different prices and
respective quantities demanded) to make a demand
curve for cell phone service.
• Note the demand curve consists of possibilities,
and may be only one would realize.
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Market Demand Schedule
Price
(monthly bill)
Cell phone service Cell phone 120
price subscribers
(monthly bill) (millions)
$ 124 100
$ 92
$ 73
$ 58 80
$ 46
$ 41
60
Demand
40
Quantity
(millions of
0210 030405060 70 subscribers)
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