a) demand curves

• define demand

• the amount of a good or service that consumers are willing and able to purchase at a given price and time

• state the components of a demand curve

• y-axis = price

• x-axis = quantity demanded

• gradient = constant and negative

• state the reason for the shape of the demand curve

• consumers are willing to purchase less of a good or service at higher prices to maximise their utility

• explain the relationship between price and quantity demanded

• a change in only the price causes a change in the quantity demanded and causes the position to move along the demand curve

• state how a price decrease affects the quantity demanded

• the quantity demanded increases so there is an extension in the quantity demanded

• state how a price increase affects the quantity demanded

• the quantity demanded decreases so there is a contraction in the quantity demanded

• define the conditions of demand

• the factors other than price that cause a change in demand

• state examples of some conditions of demand

• a change in population size

• a change in real income

• a change in the price of substitute or complementary goods

• explain the relationship between the conditions of demand and demand

• a change in the conditions of demand causes the demand curve to shift left if demand decreases or shift right if demand increases and does not change the gradient of the demand curve