Demand
The other day my son, David Junior, bought me a Macroeconomics Bar Charts
. He did this because he noticed I was studying Macroeconomics
and listening to lectures from Lecture King on Macroeconomics.
. He did this because he noticed I was studying Macroeconomics
and listening to lectures from Lecture King on Macroeconomics.
When we speak of demand in economics we are talking about
all the demand in the market. That is, all the demand for a particular good worldwide.
This is an oversimplification, but just for the sake of making the point here.
Basically, demand is the total amount of goods consumers
want at a particular price point. If the price of a good goes up, Ceteris
Paribus, the demand for that good goes down. When the price of gas goes up
people try to find ways of not having to use so much gas. They combine trips or
buy more fuel efficient cars or whatever they can do to purchase less.
If the price of a good drops, Ceteris Paribus, the demand
for that good increases. When the price of gas is lower than normal, people
drive more.
When the price of beef goes up, the demand for beef goes
down.
I remember one time I was in the grocery store during a time
that tomatoes were way overpriced. An elderly woman looking at the tomatoes
said, “These tomatoes must be made of gold. “ She did not purchase any tomatoes
that day.
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