Economics · Unit 2: Microeconomics

EC2.1 — Demand

Economics · SL / HL · syllabus-mapped notes

1. EC2.1.1

   The law of demand, relationship between price and quantity demanded

   Explain why quantity demanded falls as price rises, and at HL the two assumptions behind it, diminishing marginal utility, and the income and substitution effects.

2. EC2.1.2

   Demand curve

   Draw a demand curve from a demand schedule, with price on the vertical axis and quantity on the horizontal.

3. EC2.1.3

   Relationship between an individual consumer’s demand and market demand

   Explain how the demands of individual consumers add up to market demand.

4. EC2.1.4

   Non-price determinants of demand

   Explain how income, tastes, price expectations, the prices of substitutes and complements, and the number of consumers each shift the demand curve.

5. EC2.1.5

   Movements along the demand curve and shifts of the demand curve

   Distinguish a change in quantity demanded, caused by price, from a change in demand, caused by anything else.