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Demand

The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price.

Key concept indicators

  • Construct an individual’s demand schedule (after research or with given data).
  • Draw a demand curve for an individual.
  • Recognise that consumers will respond to changes in the price of a good / service and to non-price factors affecting demand (such as, changes in the price of substitutes or complements, changes in taste, and changes in income, including the impact of a change in income on the demand for luxuries, necessities and inferior goods / services).
  • Illustrate a change in price as a movement along a demand curve (that is, a change in quantity demanded) and using this to support explanations of consumer responses.
  • Illustrate a change in a non-price factor as a shift of a demand curve (i.e. a change in demand) and using this to support explanations of consumer responses.
  • Explain how a consumer will respond to a change in price of a good / service in a market and the flow on effects of this response for the consumer.
  • Explain how a consumer will respond to a change in a non- price factor affecting demand and the flow on effects of this response for the consumer.

Possible context elaboration

Inquiring into spending at the local supermarket

Students could visit the local supermarket and collect information on prices, brands etc and then survey classmates to gather data about important economic relationships. Their research should provide them with the data they need to determine the relationship between price and quantity demanded and to plot a demand curve. Data could also be collected to show the effect of non-price factors on demand. Students could then present this as a shift of the demand curve.

Last updated May 9, 2013



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