1.1.3 demand Flashcards
1
Q
Effective demand
A
Quantity of a good or service consumers are willing and able to buy at a certain price over a period of time
2
Q
Demand
A
Quantity of a good or service that will be bought at a certain price over a period of time
3
Q
Law of demand
A
There is a negative casual(inverse) relationship between the price of a good and its quantity demanded over a time period
4
Q
What causes a movement along the demand curve
A
Change in price
5
Q
What causes a shift in the demand curve
A
- Fashion/tastes
- Advertising
- Demographic changes
- Income
- Price of substitutes/compliments
- Expectations
- Buyers
6
Q
Substitute goods
A
Goods that are bought as alternatives, have similar functions
- As price of product a rises, the demand for product b increases, vice versa
7
Q
Complementary goods
A
Goods that are purchased/consumed together
- As the price of product a rises, the demand for product b decreases
