Demand

What is demand?

Demand is the number of units of goods a consumer wants to buy at various prices

Explain the Law of Demand

The law of demand states that an increase in price leads to a decrease in quantity demanded or a decrease in price leads to an increase in quantity demand

Give and example of the law of demand

If price if strawberries increase by 20 euro per kg then the quantity demanded of strawberries purchased would fall

What is consumer surplus?

The benefit to consumers due to the difference between what consumers actually pay to consume a good and what they would have been willing to pay rather than go without the good

Give an example of consumer surplus

If you want to buy a house and have a budget of 300,000 euro but buy it for 280,000 euro you have consumer surplus of 20,000 euro