Section 1
What Is Demand?
Explain the differences between the terms in each of these pairs:a. demand law of demandb. demand schedule demand curvec. market demand schedule market demand curve
Look at Figure 4.1 on page $99 .$ Write a caption for the figure that explains the law of demand.
Review the information on Vera Wang on the opposite page. Why is it unlikely that most brides will have demand for an original Vera Wang gown?
How might an owner of a bookstore put together a market demand schedule for his or her store?
Why does the demand curve slope downward?
How are price and quantity demanded related? Refer to your completed cluster diagram.
List three products that you are familiar with and the approximate price of each. Which of the products, if any, do you have a demand for? Consider the two requirements of demand as you answer this question.
Why might Rafael's market demand schedule and curve not be an accurate reflection of the actual market? To answer this question, consider the assumption that was made when the schedule and curve were created.
Return to the demand schedule for pizzas you created for Application B on page 101 . Assume that your class is the market for pizzas. Tabulate these individual demand schedules to create a market demand schedule. Then usethat schedule to draw a market demand curve.
Does quantity demanded always fall if the price rises? List several goods or services that you think would remain in demand even if the price rose sharply. Why does demand for those items change very little? (You will learn more about this topic in Section $3 .$