The Demand Curve

- The demand curve exhibits how much of a good consumers are ready to buy as the price per unit changes keeping non-price factors constant.

- This price-quantity relationship can be exhibited by the equation: 

Non-price Determining Variables of Demand 

- Consumer Tastes

- Income

- Price of Associated Goods

      Substitutes

     Complements

?Income enhances

- At P1, manufacture Q2

- At P2, manufacture Q1

- Demand Curve moves right

- More purchased at any price on D' than on D

Demand - A Review

- Demand is find out by non-price demand-determining variables, like, price of related goods, tastes, and income.

- Changes in demand are given by shifting the complete demand curve.

- Changes in quantity demanded are given by movements along with the demand curve.