Changes in the Quantity Demanded |
The lower the price, the greater the quantity demanded, other things being equal.
The higher the price, the smaller the quantity demanded, ceteris paribus.
There is a negative, indirect, downward-sloping relationship between price and quantity.
This is illustrated by moving along a demand curve.
So when the price is "high" we are willing and able to buy "some" of the good or service and when the price is "low" we are willing and able to buy "more" of the good or service.
When the price changes, there is a change in the quantity demanded.
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A Change in Demand |
The Demand Curve or Demand Schedule may be influenced by changes in:
- Number of buyers
- Price of a substitute good
- Income of buyers
- Mother Nature
- Price of a complementary good
- Tastes of buyers
so that at every price, there is a new, different quantity demanded.
This is illustrated by shifting the entire demand curve.
So when the price is "high" we are now willing and able to buy "a bit" of the good or service and when the price is "low" we are now willing and able to buy "lots" of the good or service.
This illustrates a change in demand, where at every price there is a new quantity demanded.
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