demand curve

Demand curve is from the perspective of the

Buyer

Law of demand

Price goes down quantity goes up

Demand curve moves only if

Price changes

How to find market demand

Add all quantities horizontally

Increase in demand shifts the curve which direction?

Right

Example of normal good and inferior good

Normal- fancy pizza

Inferior - Totinos pizza

Normal good shifts

Right

Inferior good shifts

Left

Example of compliment and direction of price/quantity

Peanut butter and jelly; PB price goes down, quantity goes up; jelly shifts right

Substitute example and direction

Coke and Pepsi. Coke price goes down quantity demand goes up Pepsi demand goes left

If consumers expect price to rise, the demand will be higher now which direction will the curve shift?

Right

If consumers expect price to lower, the demand is decreased now which direction will the curve shift?

Left

If you expect your income to go up, what happens to your demand?

Your demand will go up

Causes of shift of demand curve

Anything other than price of the product. Ex: customer preference, change in number of buyers, change in income

Only use term quantity demanded only when the Changes

Price

On a demand curve how is an increase in price shown

Same line; goes up