Chapter 4 Demand 4-1 What is Demand?

Chapter 4 – Demand
4-1 What is Demand?
CA Standards:
12.1 Students understand common economic terms and concepts and
economic reasoning
12.2.2 Discuss the effects of changes in supply and/or demand on the
relative scarcity, price, and quantity of particular products.
• Explain the meaning and concept of demand.
• Explain the purpose of a demand schedule.
• Illustrate the concept of demand in the form of a graph
In notebook – write definition of
key terms found on page 86
Use glossary in textbook
•Law of Demand
•Change in Quantity demanded
•Income Effect
•Substitution Effect
•Change in Demand
Read pages 86 - 90
Economics: Principles & Practices
Prepare for Open notebook Quiz
Terms page 82
Demand Schedule
Demand Curve
Most people think of demand as being the
desire to have or to own a product. In order
for demand to be counted in the marketplace,
however, wanting a product must coincide
with the ability and willingness to pay for it.
Only those people with demand – the desire,
ability, and willingness to buy a product – can
compete with others who have similar
1. What three factors make up demand?
2. What term refers to the part of economics
that deals with behavior of small groups?
3. What are two reasons why knowledge of
demand is essential?
A. – to understand how a market economy
B. – for sound business planning.
4. What is the purpose of a demand schedule?
- to show the quantity demanded at all
prices that might prevail in the market at a
given time.
5. How is a demand curve similar to and
different from a demand schedule?
Similar to: - Both tell the quantity demanded at
each and every price.
Different to: - The Demand Schedule presents
information in a table while the Demand Curve
shows it in a graph.
Be prepared for open
notebook quiz