1.2.1 demand Flashcards
1
Q
define demand
A
demand is what consumers are actually able to buy and what they can afford and not want
2
Q
what is the rule of the demand curve.
A
the general rule is that the curve slopes down
3
Q
why do businesses need to understand the demand curve?
A
They need to be able to understand the demand schedules for the goods and services that they sell so they can be aware of how a price change will affect demand
4
Q
what relationship does demand have with price
A
- the demand slopes down because it has an inverse relationship between price and quantity demanded
5
Q
what are the other factors that will lead to change in demand other then price?
A
- preferences
- complements
- marketing
incomes of consumers - substitutes
- seasonality
- external shocks
6
Q
what are the axis when drawing a demand curve
A
Y= prices X= quantity demanded
