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Picture Ahmed at his spaza shop in Khayelitsha. On a hot day, customers rush in for cold drinks, but when it rains, fewer people buy them. This is demand in action: the willingness and ability of people to buy goods at different prices. Demand isn’t just about wanting something—it’s about being able to pay for it. For example, many people want a Springboks jersey, but only those with enough rand can actually buy one. The law of demand says that as the price of a good rises, the quantity demanded usually falls, and vice versa. This is why, during load-shedding, the price of candles in Polokwane might shoot up—more people want them, but not everyone can afford the higher price. Remember, demand is always linked to price and ability to pay, not just desire.
Imagine Sipho selling vetkoek at the taxi rank in Mthatha. At R2 each, he sells 50 a day. If he raises the price to R4, he only sells 20. Plotting these points on a graph, with price on the vertical axis and quantity on the horizontal, gives us the demand curve. The curve slopes downwards from left to right, showing the inverse relationship between price and quantity demanded. A common misconception is that the curve can slope upwards—this is almost never true for normal goods. The only exceptions are rare cases like Giffen goods, which you won’t see in your local shop. Always remember: higher prices mean fewer buyers, lower prices attract more buyers. This downward slope is a key feature of demand.
Let’s say the price of kota in Soweto drops from R25 to R20. Thandi, who usually buys one a week, now buys two. This is a movement along the demand curve—a change in quantity demanded, caused by a price change. But if Banyana Banyana wins a big match and everyone celebrates with kota, even at the old price, more people buy them. This is a shift of the entire demand curve—a change in demand, not just quantity demanded. Factors like income, tastes, or the price of related goods can shift demand. Many learners mix up these terms: movement along the curve is due to price changes; shifts of the curve are due to other factors. Get this right for full marks in Paper 1!
In Durban, when the December holidays arrive, more tourists mean higher demand for bunny chow, even if prices stay the same. This is a shift in demand, not just a change in quantity demanded. Other factors that shift demand include changes in consumer income (like when the child support grant increases), changes in population (such as people moving to Gauteng for jobs), or changes in tastes (like a new amapiano hit making everyone want headphones). Substitute goods matter too—if the price of chicken goes up, more people might buy beef instead, increasing beef’s demand. Remember: shifts in demand are about more buyers or fewer buyers at every price, not just at one price.
Step 1: List the price and quantity pairs. At R25, 10 kotas are sold. At R20, 20 kotas are sold. At R15, 35 kotas are sold. Step 2: Draw axes—vertical for price (rand), horizontal for quantity. Step 3: Plot the points: (10, R25), (20, R20), (35, R15). Step 4: Connect the points with a smooth downward-sloping curve. Reason: This shows the law of demand—lower prices mean more kotas sold. Final answer: The demand curve slopes downwards. Sanity check: The curve matches what we see at the local shop—cheaper kotas, more buyers.
Step 1: Read the scenario. During a Springboks victory parade in Soweto, kota sales double, even though the price stays at R25. Step 2: Ask: Did the price change? No. Step 3: Ask: Did the quantity demanded change? Yes, it increased. Step 4: Reason: Since the price stayed the same but more kotas were bought, this is a shift of the demand curve to the right. Final answer: The demand curve shifted right. Sanity check: More buyers at every price means a shift, not just a movement along the curve.
Question: In Polokwane, minibus taxi fares rise from R10 to R15. Fewer people take taxis. Why? Let’s think: Did the price change? Yes. Did the number of passengers change? Yes, it decreased. So, this is a movement along the demand curve—a change in quantity demanded. Model answer: When fares rise, fewer people can afford the taxi, so quantity demanded falls. This is not a shift in demand because no other factor except price changed. Your turn: If the fare drops to R8 and more people take the taxi, what is this? Answer: A movement along the demand curve. This is because the change is only due to price, not outside factors.
Question: During a Durban heatwave, cold drink sales soar, even though prices stay the same. Why? Let’s break it down: Did the price change? No. Did the quantity demanded change? Yes, it increased. This is a shift of the demand curve to the right. Model answer: The heatwave increased demand for cold drinks at every price, not just at one price point. This means more people want cold drinks, regardless of price. Your turn: If a new health trend makes people avoid sugary drinks, what happens to the demand curve? Answer: It shifts left. This is because fewer people want to buy the drinks at every price, not just at one price.
1. Define demand in your own words, using an example from your community. 2. List two factors (other than price) that can shift the demand curve, and briefly explain how each works. 3. Draw a simple demand curve, label the axes, and plot at least two points based on a real product you know.
1. Explain the difference between a change in quantity demanded and a change in demand, using a local example from your area. 2. Given: At R12, 30 vetkoeks are sold; at R18, 15 are sold. Draw the demand curve and describe what happens as price increases. 3. Predict what happens to the demand for candles during load-shedding and explain your answer.
1. Analyse how a rise in unemployment in Mthatha might affect the demand for fast food, giving reasons for your answer. 2. Solve: If the price of beef rises and more people buy chicken, what happens to the demand curve for chicken? Explain your reasoning. 3. Justify: Why is it important for spaza shop owners to understand shifts in demand? Give at least two reasons.
Answer: As price increases, quantity demanded decreases
Many learners mix up the direction. The law of demand always means higher prices lead to fewer buyers, not more.
Answer: A new music festival in Soweto
A festival brings more buyers at every price, shifting the curve. Price changes cause movement along the curve, not a shift.
Answer: Movement along the demand curve
A price change causes a movement along the curve, not a shift. Many confuse this with a shift.
Answer: A drop in price
A price drop causes movement along the curve, not a shift. The others are non-price factors that shift demand.
Answer: Demand for beef increases
Chicken and beef are substitutes. If chicken becomes expensive, more people buy beef, shifting its demand curve right.
Answer: Because as price falls, more people can afford the good, so quantity demanded increases.
The downward slope of the demand curve shows that when the price of a good decreases, more people are both willing and able to buy it. This is because lower prices make the product affordable to a larger group, increasing the quantity demanded. If the price rises, fewer people can afford it, so the quantity demanded drops. This is a basic principle seen in everyday markets.
Answer: The change in quantity demanded is 10 kotas.
To find the change in quantity demanded, subtract the old quantity (10 kotas) from the new quantity (20 kotas). This gives 20 - 10 = 10 kotas. This calculation shows how much more is bought when the price drops, which is a movement along the demand curve.
Answer: This is a shift in demand.
When more cold drinks are sold at the same price, it means the entire demand curve has shifted to the right. This is because an outside factor (the match) increased demand at every price, not just due to a price change. Many learners confuse this with a movement along the curve, but price did not change here.
Answer: Demand increases
When people get jobs, their income rises, so they can afford to buy more fast food. This causes the demand curve to shift right. Learners sometimes confuse this with a movement along the curve, but here the price did not change—income did.
Answer: Price decreased, quantity demanded increased
A movement down the demand curve means the price is dropping and more of the good is being bought. This is not a shift of the curve, but a movement along it. Many learners mistakenly think any increase in quantity means a shift, but only non-price factors cause shifts.
Answer: To plan for changes in customer numbers
Spaza shop owners need to plan for changes in customer numbers so they can adjust stock, pricing, and avoid shortages or waste. Understanding shifts in demand helps them make better business decisions. Learners may think only price matters, but planning for demand shifts is crucial for long-term success.
Answer: Demand decreases
A health warning is a non-price factor that makes people less willing to buy sugary drinks at any price, so the demand curve shifts left. This is not just a movement along the curve. Many learners confuse a decrease in quantity demanded with a shift in demand, but here the whole curve moves.