Candy is only sweet to the one who eats it.

Latin phrase meaning “all things remaining equal”
Mmmmm…..candy

Yummy candy the amount of a good or service that a consumer is willing and able to buy at various possible prices during a given time period.

Purchasing Power : amount of money a consumer can spend
Quantity Demanded
: Actual amount… at a particular price
Demand schedule : a chart that lists quantity demanded with price
Demand curve : Graph of demand schedule. (goes down)
Income effect : An increase or decrease in a consumer’s purchasing power causes a change in demand.

Demand Schedule & Individual Demand
Curve

Demand Schedule & Market Demand Curve
-What producers will make depending on demand from individuals.

Because of ceteris paribus only the price can affect the quantity demanded.
THE LAW OF DEMAND:
An increase in the price causes a decrease in the quantity demanded and a decrease in price causes an increase in quantity demanded.

When the demand curve moves left, demand decreases. When it moves right, demand increases.

Substitutes: an alternative .
Substitution effect : the tendency of consumers to replace a higher-priced product for another similar product that is lower in price. Ex: generic drugs or chicken for beef
Diminishing marginal utility : the more of an item you get the less useful it becomes.
Normal goods: as income goes up people buy more inferior goods: w hen income goes up people stop buying these (mac and cheese with hot dogs)
Complementary goods : goods that are commonly bought with other goods (Ex: toothbrush and toothpaste)

Six Factors that cause a change in the total amount of demand