This short revision presentation explores the distinction between individual and market demand. Market demand is the aggregation of individual demand for goods and services at a given price.

2. Demand for Goods and Services
• Basic definition of demand:
• Demand for a good or service is the
quantity that purchasers are willing
and able to buy at a given price in a
given period of time.
• Effective demand:
• Only if demand for a product is backed
up by a willingness and ability to pay
the market price does demand
becomes effective or realized or actual.
• The basic law of demand is that
demand varies inversely with price –
lower prices make products more
affordable for consumers.
Effective demand is
backed up with an
ability to pay
Potential (latent)
demand is not yet
expressed in the
market

3. The Demand Curve: Price & Quantity Demanded
Price of
Coffee
Quantity demanded
of coffee
Demand for Coffee
P1
Q1
P2
Q2
P3
Q3
A higher price leads to a
contraction of quantity demanded
A lower price leads to an expansion
of quantity demanded
Only changes in market price cause a
movement along the demand curve

4. Illustrating Shifts in the Demand Curve
Price of
Coffee
Quantity demanded
of coffee
D1
P1
Q1 Q2
D2D3
Q3
D1 to D3 is an inward shift of
demand – less is demanded at
each market price
D1 to D2 is an outward shift of
demand – more is demanded at
each market price
Changes in price do not cause shifts in the
demand curve for a product

5. Daily Circulation of Leading UK Newspapers
1,741.84
1,562.36
1,412.45
1,381.08
791.84
766
732.36
472.94
472.87
413.14
402.75
367.11
356.98
298.63
282.52
0 200 400 600 800 1000 1200 1400 1600 1800 2000
The Sun
Daily Mail
Sun on Sunday
Mail on Sunday
Daily Mirror
Sunday Times
Sunday Mirror
Daily Telegraph
Daily Star
Daily Express
The Times
Sunday Express
Sunday Telegraph
Daily Star Sunday
Sunday People
Circulation in thousand copies

6. Market Demand: Falling Sales of Newspapers in the UK
Growth of newspaper markets in selected countries worldwide between 2013 and 2017
Compound annual growth rate of newspaper markets in selected countries worldwide
between 2013 and 2017
10%
9%
6%
4%
-1% -1%
-2%
-3% -3% -3%-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
India Indonesia China Brazil South
Korea
United
Kingdom
Germany United
States
Italy Japan
Compoundannualgrowthrate

7. Market Demand: Global Sales of Wearable Devices
0
20
40
60
80
100
120
140
160
2013 2014 2015
Shipmentsinmillions
Wearable cameras Smart glasses Smart watches
Healthcare Sports/activity trackers Wearable 3D motion trackers
Smart clothing
Global market demand for wearable devices is soaring – to what
extent are social factors more important than factors such as income?