The law of demand states that as price increases (decreases) consumers will
purchase less (more) of the specific commodity.
The demand schedule (demand curve) reflects the law of demand it is a
downward sloping function and is a schedule of the quantity demanded at
each and every price.
Demand Curve
Price and quantity - again the demand curve shows the negative relation
between price and quantity.
a. Price and quantity - again the demand curve shows the negative relation
between price and quantity.
b. Individual versus market demand - a market demand curve is simply an
aggregation of all individual demand curves for a particular commodity.
c. Nonprice determinants of demand; and a shift to the left (right) of the
demand curve is called a decrease (increase) in demand. The nonprice
determinants of demand are:
1. tastes and preferences of consumers,
2. the number of consumers,
3. the money incomes of consumers,
4. the prices of related goods, and
5. consumers' expectations concerning future availability or prices of
the commodity.
d. Changes in demand versus in quantity demanded