Demand - Revision history

Jmdonev: 1 revision imported

2026-08-04T20:43:50Z

1 revision imported

← Older revision	Revision as of 20:43, 4 August 2026
(No difference)

energy>Jmdonev at 21:10, 10 July 2026

2026-07-10T21:10:21Z

← Older revision		Revision as of 21:10, 10 July 2026
Line 1:		Line 1:
	[[Category:Done ~~2017~~-07-01]]		[[Category:Done 2026-08-01]]
	[[Supply]] and [[demand]] are [[market \| market forces]] that interact to determine the [[price]] and quantity of [[goods and services]] that are bought and sold in a [[market]]. '''Supply''' is the total amount of a good or service that the producers in a market are willing to sell. '''Demand''' refers to the total amount of a good or service that all the buyers in a market are willing to purchase.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> Both of these forces in the market respond to and together, they shape the price of a good or service in a market.		[[Supply]] and [[demand]] are [[market \| market forces]] that interact to determine the [[price]] and quantity of [[goods and services]] that are bought and sold in a [[market]]. '''Supply''' is the total amount of a good or service that the producers in a market are willing to sell. '''Demand''' refers to the total amount of a good or service that all the buyers in a market are willing to purchase.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> Both of these forces in the market respond to and together, they shape the price of a good or service in a market.

Line 6:		Line 6:

	There are a number of factors that influence the level of demand such as:<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics'', pp. 17.</ref>		There are a number of factors that influence the level of demand such as:<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics'', pp. 17.</ref>
	*~~The number~~ of consumers.		*Number of consumers.
	*~~The tastes~~ of consumers.		*Tastes of consumers.
	*~~The~~ [[~~wealth~~]] or income level of the consumer.		*[[Wealth]] or income level of the consumer.
	*~~The price~~ of a good relative to others.		*Price of a good relative to others.
	*~~The price~~ of the good being purchased.		*Price of the good being purchased.

	===Price===		===Price===
	Price is the most influential factor when demand changes because price is often the most important consideration for a consumer when purchasing goods. As prices can be changed easily, it is the factor which can respond to shocks the quickest. While tastes and other factors change over time, it is easy to change the price of an item, an electronic gas station sign can be changed instantaneously for example. Price is important because it is also a factor that the supply side has to respond to. Each one of these factors is able to influence the demand of a market and it is conceivable that they could all act at once but for all intents and purposes it is best to examine the effect that price has on the demand side of a market.		Price is the most influential factor when demand changes because price is often the most important consideration for a consumer when purchasing goods. As prices can be changed easily, it is the factor which can respond to shocks the quickest. While tastes and other factors change over time, it is easy to change the price of an item, an electronic gas station sign can be changed instantaneously for example. Price is important because it is also a factor that the supply side has to respond to. Each one of these factors is able to influence the demand of a market and it is conceivable that they could all act at once but for all intents and purposes it is best to examine the effect that price has on the demand side of a market.
Line 48:		Line 49:
	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category: Uploaded]]

Jmdonev: 1 revision imported

2017-08-29T01:47:25Z

1 revision imported

← Older revision	Revision as of 01:47, 29 August 2017
(No difference)

Jmdonev at 19:18, 17 August 2017

2017-08-17T19:18:41Z

← Older revision		Revision as of 19:18, 17 August 2017
Line 1:		Line 1:
	[[Category:Done ~~2016~~-04-30]]		[[Category:Done 2017-07-01]]
	[[Supply]] and [[demand]] are [[market \| market forces]] that interact to determine the [[price]] and quantity of [[goods and services]] that are bought and sold in a [[market]]. '''Supply''' is the total amount of a good or service that the producers in a market are willing to sell. '''Demand''' refers to the total amount of a good or service that all the buyers in a market are willing to purchase.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> Both of these forces in the market respond to and together, they shape the price of a good or service in a market.		[[Supply]] and [[demand]] are [[market \| market forces]] that interact to determine the [[price]] and quantity of [[goods and services]] that are bought and sold in a [[market]]. '''Supply''' is the total amount of a good or service that the producers in a market are willing to sell. '''Demand''' refers to the total amount of a good or service that all the buyers in a market are willing to purchase.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> Both of these forces in the market respond to and together, they shape the price of a good or service in a market.

Line 22:		Line 22:
	This change indicates the nature of a '''demand curve''', that they are downward sloping, so the cheaper a good is the more it is purchased.		This change indicates the nature of a '''demand curve''', that they are downward sloping, so the cheaper a good is the more it is purchased.

	*At point '''A''' the price is $5.00 per gallon and the amount purchased by consumers is 0, this is known as the [[demand choke point]]. Graphically, it is the vertical intercept of the demand curve.<ref>~~Investopedia.~~ "~~Choke Price.~~" ~~[Online]~~, ~~Available: http://www~~.~~investopedia.com/terms/c/chokeprice.asp?o=40186&l=dir&qsrc=999&qo=investopediaSiteSearch~~[~~June 23~~, ~~2016~~].</ref>		*At point '''A''' the price is $5.00 per gallon and the amount purchased by consumers is 0, this is known as the [[demand choke point]]. Graphically, it is the vertical intercept of the demand curve.<ref name=Rout_econ>"Routledge Dictionary of Economics" choke price published Routledge Press, 2013. Edited by Donald Rutherford Online version accessed [August 17th, 2017].</ref> (This means that there is no more demand.)

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:24Z

1 revision imported: From the summer

← Older revision	Revision as of 22:29, 17 September 2016
(No difference)

Jmdonev at 19:07, 4 August 2016

2016-08-04T19:07:22Z

New page

[[Category:Done 2016-04-30]]
[[Supply]] and [[demand]] are [[market | market forces]] that interact to determine the [[price]] and quantity of [[goods and services]] that are bought and sold in a [[market]]. '''Supply''' is the total amount of a good or service that the producers in a market are willing to sell. '''Demand''' refers to the total amount of a good or service that all the buyers in a market are willing to purchase.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> Both of these forces in the market respond to and together, they shape the price of a good or service in a market.

==Demand==
<onlyinclude>'''Demand''' is "the ability and desire to buy goods and services, or the quantity of a good or service that is needed in order to meet the requirements of the user."</onlyinclude><ref>C. Park. "Demand." ''Oxford Dictionary of Environment and Conservation''. [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780198609957.001.0001/acref-9780198609957-e-1950?rskey=WVw7C1&result=1, 2007 [June 23, 2016].</ref> Demand is essentially how much of a good or service will be purchased by buyers in the market at a certain price.

There are a number of factors that influence the level of demand such as:<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics'', pp. 17.</ref>
*The number of consumers.
*The tastes of consumers.
*The [[wealth]] or income level of the consumer.
*The price of a good relative to others.
*The price of the good being purchased.
===Price===
Price is the most influential factor when demand changes because price is often the most important consideration for a consumer when purchasing goods. As prices can be changed easily, it is the factor which can respond to shocks the quickest. While tastes and other factors change over time, it is easy to change the price of an item, an electronic gas station sign can be changed instantaneously for example. Price is important because it is also a factor that the supply side has to respond to. Each one of these factors is able to influence the demand of a market and it is conceivable that they could all act at once but for all intents and purposes it is best to examine the effect that price has on the demand side of a market.

==Movement Along the Demand Curve==
[[File:Demand- Gas Curve2.png|450px|thumb|right|Figure 1. A demand curve indicating the relationship between the price of gasoline and the quantity purchased at each price.]]

In '''Figure 1.''' we can see how the price of a gallon of [[gasoline]] affects the amount that is purchased by consumers:
*At point '''F''' when the price is $2.50 per gallon there are 80 million gallons of gasoline sold.
*When the price rises to $4.00 at point '''C''' consumers are only willing to purchase 50 million gallons of gasoline.
This change indicates the nature of a '''demand curve''', that they are downward sloping, so the cheaper a good is the more it is purchased.

*At point '''A''' the price is $5.00 per gallon and the amount purchased by consumers is 0, this is known as the [[demand choke point]]. Graphically, it is the vertical intercept of the demand curve.<ref>Investopedia. "Choke Price." [Online], Available: http://www.investopedia.com/terms/c/chokeprice.asp?o=40186&l=dir&qsrc=999&qo=investopediaSiteSearch[June 23, 2016].</ref>

==Shifts in the Demand Curve==
[[File:Demand- Shifts.png|450px|thumb|right|Figure 2. The change in consumer taste for gasoline facilitates a shrinkage of the market for gasoline and expansion in the market for electricity.]]

When a demand curve '''shifts''' it is as a result of a change in a "non-price" factor relating to demand such as consumer tastes. With the increasing effects of [[climate change]] and the realization of the impact that CO2 emissions (among others) has on the environment, consumers may be less likely to purchase gasoline regardless of its price. This change in consumer tastes will '''shift''' the entire demand curve, effectively shrinking the market for gasoline:
*In '''Figure 2''', the market as a whole has shrunk ('''D1 → D3'''), there is no longer demand for larger amounts of gasoline.
*At '''Point C''' the new price ('''P3''') and quantity ('''Q3''') reflect the shift in demand.
*Theoretically no quantity beyond '''Q3''' will be purchased.

The shift in '''Figure 2.''' does not represent a total loss in the economy. The decline in the demand for gasoline may result in an increase in the demand for electric cars and the [[complimentary good]]s that are needed to operate these vehicles such as batteries and charging stations.

Assume that a family replaces their 2 conventional gasoline powered cars with new electrical cars, in addition to purchasing the cars they have to purchase the home charging station that comes with it and in the future they may have to buy a new battery for the car. Now assume that 50% of residents in a city follow the same trend, the shift from gasoline powered vehicles to electrical will result in an increased demand for electricity and will shift the demand curve for electricity and expand the market for electricity.

*In '''Figure 2''', the electricity market is at '''Point A'''.
*As more and more people switch to electric cars the devices needed to operate them, the demand for electricity shifts ('''D1 → D2''').
*The new equilibrium at '''Point B''' reflects the new price ('''P''') and quantity ('''Q2''').
*There is a larger amount of electricity needed overall which '''shifts''' the demand curve outwards.

==See Also==
*[[Supply]]
*[[Market]]

==References==
{{reflist}}