2.2 DEMAND Demand People have almost unlimited wants but limited resources Wants become demands when backed by purchasing power. quantity demanded the amount of a good that buyers are willing and able to purchase law of demand Ceteris paribus(other things equal), the quantity demanded of a good falls when the price of the good rises demand vs price- negatively related2.2 DEMAND ◼ Demand ◼ People have almost unlimited wants but limited resources. Wants become demands when backed by purchasing power. ◼ quantity demanded ◼ the amount of a good that buyers are willing and able to purchase ◼ law of demand ◼ Ceteris paribus (other things equal), the quantity demanded of a good falls when the price of the good rises ◼ demand vs price - negatively related