Demand

This chapter highlights how consumers respond to changes in prices, income, and other economic variables. The demand curve is derived, which shows the quantity of a good that consumers will purchase at different prices. The pervasiveness and importance of the law of demand is outlined, and the elasticity of demand is defined and explained. Demand determinants are discussed in detail, including prices, prices of related goods, income, tastes and preferences, expectations of future prices, and population. Business strategies for agribusinesses are emphasized. Demand, together with supply studied in the previous chapter, form the foundation of economics: markets.