Demand & How It Effects Us by Ashley

What is Demand?

ashley_boumans — 2014-04-02 15:56:59 UTC

Demand is an economic principle that describes a consumer's desire and willingness to pay a price for a specific good and/or service.

An easy way to think of demand is to imagine it as your willingness to go out and buy a certain product.

http://www.preservearticles.com/201105287204/what-is-demand-in-economics.html

ashley_boumans — 2014-04-02 17:24:29 UTC

Picture #2: Supply VS. Demand. Below is a graph that visually represents the 'market equilibrium' that must be maintained between demand and supply in order to maintain a happy customer and a strong market.

ashley_boumans — 2014-04-02 17:25:21 UTC

Picture #1: The below scale shows the balance that is maintained at a certain price. The shift that occurs when a price rises compared to when a price falls is illustrated.

The Law of Demand

ashley_boumans — 2014-04-02 17:29:34 UTC

The law of demand states that there is a direct relationship between the price of a good and the demand for it. In particular, people generally buy more of a good when the price is low and less of it when the price is high.

To put it simply, the law of demand states that if all the other factors remain constant, if a good's price is higher, fewer people will demand it. As the price of that good goes down, the quantity of that good that the market will demand will increase.

http://economictimes.indiatimes.com/definition/law-of-demand

Economic Demand

ashley_boumans — 2014-04-02 17:33:29 UTC

Video #1: Economic demand is a term used to describe a consumer's desire and willingness to pay a certain price for a specific good or service.

The Law of Demand

ashley_boumans — 2014-04-02 17:34:31 UTC

Video #2: The law of demand states that if all other factors remain constant, fewer people will demand it.

The Law of Supply

ashley_boumans — 2014-04-02 17:35:30 UTC

After understanding the law of demand, the law of supply is simple, it's effectively the inverse of the law of demand. It states that as the price rises for a given product or service, suppliers are willing to supply more. Selling more goods or services at a high price means more revenue for the supplier.

http://economictimes.indiatimes.com/definition/law-of-supply

Law of Supply

ashley_boumans — 2014-04-02 17:39:59 UTC

Video #3: The law of supply is effectively the inverse of the law of demand.

Economics 101

ashley_boumans — 2014-04-02 17:47:58 UTC

Below the image describes, in the most basic way, how economic supply and demand works. The diamond ring represents products or services that are high value or cost but in turn are in low supply. However, the rocks deomonstrate products or services that are high supply but in turn have a low value.

In My Opinion...

ashley_boumans — 2014-04-14 23:48:20 UTC