If the price of a can of fizzy drink increases by 30 cent, the quantity demanded will decrease. This is because people only have a certain amount of money to spend on products they want but do not need. So if there is a price increase, consumers may stop buying the product.
Example 2
If the price of a television falls by €100, the quantity demanded will increase. This is because when the price of a product decreases, consumers can afford to buy more of it and new consumers will enter the market.
A In demand
In groups, go to page 212 of your Activities and Accounts Book to consider a product that is currently in demand.
Demand Curve
The relationship between demand and price at any given time can be shown on a graph called a demand curve.
Generally, a demand curve shows that the higher the price, the lower the demand for the product. This type of curve is said to have a downward or negative slope.
Quantity Example
The following table shows the quantity of a product demanded at different prices. Price (€)
