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| Demand Curve |
- If price goes down, demand goes up and vice versa.
- A change is the price of the product is a movement along the curve from £0.50 to £0.20 shown in the change in demand from 100 to 400.
- Total revenue is PxQ. In example, the total revenue when the price is at £0.50 would be £50 and the total revenue when the price is £0.20 is £80
- When you move along the curve it is either an extension (price fall and extension in demand) or a contraction (price rise and fall in contraction in demand).
What can cause a shift in demand?
- advertising
- branding
- public relations good or bad
- population growth
- tastes/preferences
- tax
- income
- a change in the price of substitutes (pork or lamb) or change in price of complement (port and apple sauce)
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