Summary:
An explanation of the effects of theoretical increases and contractions of market demand on an economy.
In an economy, market demand is the demand of all consumers for a particular good or service. It is obtained by summing the quantities demanded by all individual consumers at the various price levels. The law of demand states that people will tend to purchase more at lower prices than at high prices as long as any factors other than price which could affect the demand for a good are held constant (ceteris paribus). This can be represented in a demand curve or schedule. The demand schedule is a table showing the quantity of a good demanded at various prices. The demand curve is however, a graphical representation of this on which one is able to distinguish movements along the demand curve and shifts of the demand curve. The shifts and movements along a demand curve.....
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