In this module we first use indifference curves defined over two goods to illustrate how utility maximizing consumers will react to a change in the price of a product and the income of the consumer. We then extend the model to discuss more broadly the determinants of aggregate (or market) demand for a product. Highlighted are the definitions of substitute and complement goods, and the distinction between normal and inferior goods. Also covered are reasons the market demand curve will shift its position.

Theory of Consumer Demand - 32 minutes

Determinants of Market Demand - 19 minutes

A Linear Market Demand Function - 14 minutes

Market Demand Shift Summary - 3 minutes