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Review the distinction between demand and quantity demanded, the determinants of demand, and how to represent a demand schedule using a graph. In a competitive market, demand for and supply of a good or service determine the equilibrium price.
The demand curve in Figure 3.1 “A Demand Schedule and a Demand Curve” shows the prices and quantities of coffee demanded that are given in the demand schedule. At point A, for example, we see that 25 million pounds of coffee per month are demanded at a price of $6 per pound.
It's an intuitive concept that tends to hold true in most situations (though there are exceptions). The law of demand is a foundational principle in microeconomics, helping us understand how buyers and sellers interact in the marketplace. Created by Sal Khan. Questions. Tips & Thanks.
- 8 min
- Sal Khan
Jan 15, 2024 · Demand is an economic principle that describes consumer willingness to pay a price for a good or service.
In economic terminology, demand is not the same as quantity demanded. When economists talk about demand, they mean the relationship between a range of prices and the quantities demanded at those prices, as illustrated by a demand curve or a demand schedule.
Nov 30, 2021 · A definition of the law of demand and explanation of why higher price leads to lower demand.
