3E Economics par. 2.1

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Would you like a bag of Haagsche hopjes?

1. Yes
2. No

Would you like to buy this bag of Haagsche hopjes for € 1,-?

1. Yes
2. No

Would you like this bag of Haagsche hopjes for € 2,-?

1. Yes
2. No

Would you like this bag of Haagsche hopjes for € 3,-?

1. Yes
2. No

Would you like this bag of Haagsche hopjes for € 4,-?

1. Yes
2. No

Drawing our demand curve

Demand curve

Price ( p ) on the vertical axis

Quantity demanded ( Qd ) on the horizontal axis

The number of units consumers want to buy at a specific price

Demand curve

If the price decreases, the quantity demanded will increase

If the price increases, the quantity demanded will decrease

The demand curve is a downward sloping curve

The demand curve equation has a minus sign in it

Demand curve

Qd = -aP + b

-a indicates by how much the demand will decrease if the price is increased by € 1,-

b indicates the maximum demand as if the procuct was for free

Demand curve change

If the price changes (and everything else stays the same), then demand will change. 

 

Shift of the demand curve

• When another circumstance changes, the demand curve itself will shift.
  
• So when the price stays the same, demand will still change

Shift of the demand curve

Causes for a shift of the demand curve:

- change in income of consumers

- change in consumers' taste

- change in number of consumers

- change in prices other products

Shift of the demand curve

If demand for a product increases at any price, the demand curve shifts to the right

If demand for a product decreases at any price, the demand curve shifts to the left

right

left

Cars

Dutch population decreases

Price of petrol decreases

Income Dutch people increases

Pollution worse than expected

Price public transport decreases

Assignment 2 par. 2.1

Assignment 2 par. 2.1

From ( 0, 4 ) to ( 800, 0 )

Hw.

Par. 2.1 assignments 1 and 10