Before you start
What you will learn
- Why demand is a negative relationship between price and quantity
- How to identify market changes that will impact demand
- How to define the price elasticity of demand
- The relationship between price elasticity of demand and changing market conditions
Demand is a simple yet challenging concept that is essential to understanding how markets function. In this economics course, you will gain a solid understanding of demand, its underlying principles, major determinants and how they are beneficial for individuals, decision makers inside the firm, and policy makers.
During your time in this course, you will discover how managers can better understand the impact of pricing changes on units sold, revenue and the relationship between products in order to inform strategic planning. You will learn how many programs and policies are designed to change how individuals and businesses interact in the market and you will gain the tools to identify them. Models of consumer choice and demand will guide you in thinking about how individual incentives change and what the likely impact will be of those changes.
All people respond to changing market conditions, but the type and magnitude of those responses can be better understood through the economic model of consumer demand. You will learn how business strategy can benefit from a strong appreciation of elasticity, determinants of demand and how consumers make decisions.