Demand refers to the quantity of a good or service that consumers will purchase at a given price. The law of demand states that, generally, the lower the price of a good, the greater the quantity demanded, and the higher the price, the lower the quantity demanded. A demand schedule shows how quantity demanded changes as price changes, and a demand curve graphs this relationship, depicting the law of demand. Factors like income, prices of other goods, tastes, and expectations can impact demand.

2. Demand
 The amount of particular economic good or service
that a consumer or group of consumers will want to
purchase at a given time.
 A relationship between the price of an item and
quantity demanded.
 Willingness and with resources to pay.

3. Prices
 are the tool by which the market functions together
with individuals’ desires and limits how much people
want to buy.

4. Law of Demand
 The principle stating that, in general, other things
being equal, the lower the price of a good, the greater
the quantity of that good buyers will purchase over a
given period.
- Quantity demanded rises as price falls,
other things constant.
- Quantity demanded falls as price rises,
other things constant.

5. Demand Schedule
 A table shows how an item’s quantity demanded would
vary with price, other things being equal.

6. Demand Curve
 Is the graphic representation of the relationship
between price and quantity demanded.

7. Factors Affecting the Demand
 Income
 Prices of other goods
 Tastes
 Expectations