Today, we will discuss the concept of demand in economics. Can anyone tell me what demand means?

Yes! Demand is specifically about the *quantity* of a commodity that a consumer is willing and able to buy at a given price, during a specified time. Great start!

Excellent question! Price is crucial. Demand only counts when consumers are actually *able* to buy. This means they have the necessary income to afford it.

The period allows us to measure demand accurately—whether it's daily, monthly, or yearly—since people's willingness to buy can change over time.

To help remember, think of 'Dollars and Time’: Demand equals the dollars people are willing to spend over time.

Great! To summarize, demand reflects the quantity consumers are willing to buy at a certain price and time, and involves affordability.

Let’s explore the types of demand. Can anyone name the two main types of demand?

Exactly! Individual demand refers to the quantity demanded by a single consumer. And what about the other type?

Correct! Market demand is the sum of all individual demands in a market. Think of it as a total of what everyone wants to buy.

Exactly! The market demand would be 5 apples. Remember, it's the aggregation of everyone's needs.

Good point! Businesses analyze both types of demand to set prices and decide how much to supply. Let’s summarize: Individual demand is for one person, and market demand is the collective total.

Now, let's discuss the law of demand. What do you think this law states?

Absolutely! It tells us that, all else being equal, there’s an inverse relationship between price and quantity demanded. When prices fall, demand typically rises, and vice versa.

Great question! While it generally holds true, some exceptions exist, like Giffen or Veblen goods. However, for most products, this law applies.

Exactly! Just imagine a seesaw where one side is price and the other side is demand. When one goes up, the other goes down. To remember this, think 'Inverse Seesaw'!

In summary, the law of demand signifies that lower prices increase demand, and higher prices decrease it, embodying an inverse relationship.

Let’s now examine what influences demand. Can anyone list a few factors?

Correct! The price of the commodity itself is a primary factor. What else?

Yes, that's right! More income often leads to higher demand. Can someone name another factor?

Exactly! Consumer preferences can greatly affect demand as well. We also have related goods, population size, and future expectations.

Businesses analyze market trends, conduct surveys, and use economic data to understand these influences. To simplify these factors, think 'PIRP CPF': Price, Income, Related goods, Preferences, Population, Future expectations.

In conclusion, several factors such as price, consumer income, preferences, and future expectations can significantly influence demand.

Finally, let's talk about how we visualize demand. What tools do we use?

Exactly! A demand schedule is a table showing quantities demanded at different prices. And what about the demand curve?

That's right! The demand curve is typically downward sloping due to the inverse relationship between price and quantity demanded.

Not quite. If price decreases, we actually move to a higher quantity on the curve, showing increased demand.

Sure! Let’s say we have the following demand schedule: if the price is $5, demand is 10 units; at $4, it's 20 units. The demand curve will graphically show this increasing quantity as price falls.

To summarize, demand schedules are tables, while demand curves graph the relationship between price and quantity, exhibiting the fundamental law of demand.