Demand is closely related to the concept of supply. While consumers try to pay the lowest prices they can for goods and services, suppliers try to maximize profits. Demand drops if suppliers ...

Demand is derived from the law of diminishing marginal utility, the fact that consumers use economic goods to satisfy their most urgent needs first. A market demand curve expresses the sum of ...

The international substitution effect provides an explanation for the downward slope of the aggregate demand curve. The textbook explanation relies on fixed exchange rates. With flexible rates, the ...