May 18, 2018 4:19 am
What is the #Demand Curve in #Economics?
Demand is the number of products the buyers are willing to purchase.In #Microeconomics, we often look at the demand of one company or buyer.
In #Macroeconomics, we sometimes talk about Aggregate Demand (how many are will all buyers in the market purchase at each price).
Below is a simple explanation of the Supply Graph and what you need to know!
Let’s say that Mike is buying pencils from Metro (Màidélóng)
We want to know what price should Metro charge?
This picture is very helpful! The light Green Line (Demand – 需求) tells us how many pencils Mike will buy at each price.
Situation #1: The price is $3.00, Mike is willing to buy 50 pencils.
Situation #2: The price is $1.00, Mike is willing to buy 70 pencils.
Situation #3: The price is $4.00 and Metro has 30 pencils. Will Mike buy them?
Answer: Yes! Mike wants 40 pencils, of course he would buy 30 if they are available.
Situation #4: The price is $4.00 and Metro has 50 pencils. Will Mike buy them?
Answer: No! Mike only wants 40 pencils, so he is never going to buy 50.
So we could draw the picture like this:
So what is the Demand (需求) Curve?
Law of Demand (需求法则) ~ When price increases (上扬), buyers will be willing to buyer less products than before (when price goes up, we buy less).
Posted by deceptivelyblonde
Categories: Business & Economics, Life, Teaching
Tags: Demand, Demand Curve, Economics, macroeconomics, Microeconomics, Teaching Econ, Teaching Economics
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