商业环境Chapter 6 Market Demand.pptVIP

Market A market is a group of buyers and sellers of a particular good or service. Supermarket Street market Stock market Internet shopping Markets Buyers determine demand. Demand Quantity demanded is the amount of a good that buyers are willing and able to purchase. Law of Demand The law of demand states that there is an inverse relationship between price and quantity demanded. Demand Schedule(p186) The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded. Demand Schedule Demand Curve Demand for Corns Demand Curve The demand curve is the downward-sloping line relating price to quantity demanded. Determinants of Demand (p184-186 p188-192) Market price of this product Consumer (real) income Number of buyers (population) Advertising Seasonal factors Personal tastes Available of hire purchase / finance / other credit Expectations about future price and income Population Prices of related goods (substitutes and complements) Change in Quantity Demanded versus Change in Demand Change in Quantity Demanded Movement along the demand curve. Caused by a change in the price of the product. Changes in Quantity Demanded Change in Quantity Demanded versus Change in Demand Change in Demand A shift in the demand curve, either to the left or right. Caused by a change in a determinant other than the price. Changes in Demand Consumer Income Normal (superior)goods are any goods for which demand increases when income increases Examples include branded products, quality creams and butter, steak, fresh vegetables and fruits, fresh food, and express train or airplane Inferior goods are less consumed (rather than more) when the consumers income increases Examples include fake/counteerfeit products, cheap margarine, hamburgers, preserves and instant noodles Consumer IncomeNormal Good Consumer IncomeInferior Good Prices of Related GoodsSubstitutes Complements When a fall in the price of one good reduces the de