A-Level经济学-需求理论Demand Theory

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Revision: Demand Theory

A demand curve

For the vast majority of goods, when a good falls in price more people buy it. This is because they are gaining consumer surplus. The market demand consists of the sum of all effective demand of households.

The demand curve is downward sloping because when the price falls, the quantity demanded increases.

Determinates of demand

The following factors may influence demand, shifting the demand curve to the left if there is less demand and to the right if there is an increase in demand.

1.Price

2.Changes in taste

3.Changes in the price of relative goods

4.Changes in income

5.Changes in the distribution of income

6.Changes in the size and distribution of the population

7.Changes in marketing strategy

8.Changes in the expectation of future price levels

9.Changes in the law

10.Changes in the quality and reputation of goods

11.Introduction of a new product

12.Availability of credit

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