Lesson - Demand and The Law of Demand

Lesson: Demand and The Law of Demand - Demand has a preequisite of two factors:  the desire and the money to pay for a product or service.  Demand refers to a relationship between the amount of goods purchased at various prices.
It is the quantity of a good as well as the price of a good (or service) in which demand is defined.
     The Law of Demand is a natural law.  It states:  When the price of a good goes up, consumers will buy less of it.  Or stated conversely, When the price of a good or service goes down, people buy more of it (other things being equal). 
      The reasons for an increase in demand are limitless.  An article in the written media or a television report may impact an increase of eating corn or strawberries.  Results reported in The New England Journal of Medicine about taking a particular pill to alleviate pain may signify a drop in the demand for a highly touted foot ache panacea.
     Our next lesson on page 61 of Parkin's Economics text reflects the Demand lesson.
A note of caution:  A "change in demand" is quite different from a "shift in price."  A change in demand moves the demand curve to the right (and a decrease in demand is a shift to the left).
Construct a Demand Schedule from the following data: 

       Original demand schedule           New Demand Schedule
       CD Burner = $300                          CD burner  = $100
         Price            Quantity                    Price           Quantity
A       .50                    9              A*         .50                 13
B     1.00                   6               B*       1.00                10
C     1.50                   4               C*       1.50                  8
D     2.00                   3               D*       2.00                 7
E      2.50                  2               E*        2.50                 6

    
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