What you’ll learn to do: explain the determinants of demand

Imagine that the price of Ben & Jerry’s ice cream decreases by 25 percent during the next summer. What do you think will happen to the amount of Ben & Jerry’s ice cream that people will want to buy? Clearly, the demand for ice cream will increase. By the same token, if the price of the ice cream were to rise by 25 percent, then the demand for the ice cream would fall. In this section, you will examine the law of demand and see why this simple concept is essential to understanding economics.

The specific things you’ll learn in this section include the following:

• Explain the law of demand
• Explain a demand curve
• Create a demand curve using a data set
• Describe the differences between changes in demand and changes in the quantity demanded
• Explain the impact of factors that change demand

Learning Activities

The learning activities for this section include the following:

• Video: The Law of Demand
• Reading: What Is Demand?
• Video: Change in Demand vs. Quantity Demanded
• Reading: Factors Affecting Demand
• Worked Example: Shift in Demand
• Reading: Summary of Factors That Change Demand
• Simulation: Demand for Food Trucks
• Self Check: Demand