Microeconomic Theory · Study Notes

Demand and Elasticity

Preferences: A change in tastes can raise or lower demand.
Expectations: Expected future prices or income may influence current purchases.
Number of buyers: More buyers generally increase market demand at each price, all else equal.
Demographics: Age, household composition and population characteristics can alter demand.
Credit availability: Financing conditions may influence demand for durable goods.

Understand the determinants of demand, the derivation of demand functions, consumer responses to price and income changes, elasticity measures, and the applications of demand theory in economics.

12 chapters Theory + Derivations UG & Master's Economics

The law of demand: price and quantity demanded usually move in opposite directions.