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Chapter 3 the demand curve

Chapter 3 discusses the concept of effective demand and the demand curve, explaining how to construct a demand curve from a demand schedule. It differentiates between movements along the demand curve due to price changes and shifts in the demand curve caused by non-price factors. The chapter emphasizes the importance of understanding the distinction between changes in quantity demanded and changes in demand.

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3 views16 pages

Chapter 3 the demand curve

Chapter 3 discusses the concept of effective demand and the demand curve, explaining how to construct a demand curve from a demand schedule. It differentiates between movements along the demand curve due to price changes and shifts in the demand curve caused by non-price factors. The chapter emphasizes the importance of understanding the distinction between changes in quantity demanded and changes in demand.

Uploaded by

austin.lakra-smchs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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THE DEMAND CURVE

CHAPTER 3
LESSON OBJECTIVES

🞭 To understand the concept of effective


demand and demand curve
🞭 To construct a demand curve using a
demand schedule
🞭 To analyse the movement along the
same demand curve
🞭 To evaluate the shift in the demand
curve (increase and decrease in
demand)
STARTER
EFFCTIVE DEMAND

🞭 Effective demand is the amount of a


good people are willing to buy at given
prices over a given period of time
supported by the ability to pay
DEMAND SCHEDULE

🞭 Demand schedule is a table of the


quantity demanded of a good at
different price levels.
DEMAND CURVE
🞭 The demand curve is a graph
illustrating how much of a given
product a household would be willing to
buy at different prices.

https://www.investopedia.com/terms/l/lawofdemand.asp
DRAW A DEMAND CURVE
STRAIGHT LINE DEMAND CURVE
Demand curves can vary in shape, giving
rise to different types of curves. They can
be straight lines, curved, kinked, or even
discontinuous. For simplicity, most
demand curves are drawn as straight lines
(linear). The slope of the line indicates how
sensitive consumers are to changes in
price.
MOVEMENT ALONG THE DEMAND CURVE

🞭 A change in price causes a movement


along the demand curve. It can either
be contraction (less demand) or
expansion/extension. (more demand)
SHIFT IN DEMAND CURVE
🞭 Shift in demand curve means the movement to the
left or right of the entire demand curve when there is
change in any factor affecting demand except the
price (increase or decrease in demand)
DIFFERENCES BETWEEN CHANGE IN DEMAND AND CHANGE IN
QUANTITY DEMAND.

🞭 In economics, the
change in quantity demanded is not the same as the
change in demand
. Thus, it is necessary that we distinguished between
these two phenomena.
🞭 As you just saw above, when own-price changes, the
quantity demanded also changes, this is called
a change in quantity demanded or movement
along the same demand curve.
🞭 Changes in quantity demanded are usually
attributed to changes in good own price.
🞭 Change in demand, on the other hand, is caused by
non-price. What are these other factors that affect
demand? and how do they affect demand?
PLENARY
PLENARY

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