Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can define demand and quantity demanded, and explain why “willing and able” both matter. (Guide: “What demand means”)
- I can state the law of demand and explain why the demand curve slopes downward. (Guide: “The law of demand”)
- I can explain the difference between a change in quantity demanded and a change in demand. (Guide: “Change in quantity demanded v. change in demand”; Practice Q1, Q6(c))
- I can tell normal goods from inferior goods, and substitutes from complements, using how buyers respond. (Guide: “The determinants of demand”; Practice Q2, Q3)
Skills
- I can build a market demand schedule by adding the quantities all buyers demand at each price. (Guide: Worked example 1; Practice Q5(a)–(b))
- I can draw a correctly labelled demand graph with price on the vertical axis and quantity on the horizontal axis. (Guide: Figure 1; Practice Q6(a))
- I can show an increase or a decrease in demand as a labelled shift with an arrow. (Guide: Worked example 2, Figure 2; Practice Q6(b))
- I can show a change in the good’s own price as a movement between two points on the same curve. (Guide: Figure 1; Practice Q6(d))
- I can read a before-and-after schedule and say whether demand increased or decreased. (Practice Q4, Q5(c))
Reasoning
- I can predict the direction of the shift caused by a change in income, the price of a related good, tastes, expectations or the number of buyers, and give the reason. (Guide: “The determinants of demand”; Practice Q2–Q4, Q6(e))
- I can explain why the overall effect of two opposite shifts is uncertain without more information. (Practice Q7(b)–(c))
- I can spot the error when a fall in price is described as an increase in demand. (Guide: “Common misconceptions”; Practice Q7(d))
All ticked? Move on to Topic 1.5, Supply, or return to the course roadmap.