Learning objectives
State the law of demand and explain it using the substitution effect, the income effect and diminishing marginal utility
Construct a demand curve from a demand schedule and distinguish individual demand from market demand
Distinguish a movement along the demand curve (change in quantity demanded, caused by price) from a shift of the curve (change in demand)
Explain the determinants of demand: tastes, income for normal and inferior goods, prices of substitutes and complements, number of buyers and expectations
Show an increase or decrease in demand on a diagram and identify the direction of the shift
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