1.2.1 Demand Flashcards
What is a market
A place where buyers and sellers meet and exchange goods
What is an example of a market
Stock market
Websites
Triage fair
Does the buyer sell supply or demand
Demand
Does the seller demand or supply
Supplies
What is the resignation of demand
The quantity of gods and services that will be bought at a given price in a time period
What is movement along a demand curve
When the price of a good and service changes, there is said to be movement along the demand curve.
You don’t need to draw another demand curve
What is shift of a demand curve
When somthing other than price changes then a new demand will need to be drawn, the demand curve shifts
How does a change in the price of substitutes effect demand
An increase in price for substitute will increase demand for good
How does the change in the price of complements effect demand
If the price for cars went up then the demand for fuel would decrease
What is a complementary good
A good bought with another food to satisfy a want
How will a change in consumer income effect demand
If consumer income increases, the demand for cars would increase
What is a normal good
A good or service which increases in demand when its price falls e.g. cars
What is an inferior good
A good or service which increases in demand when incomes decrease e.g. buses or white bread
How does changes in fashion tastes and preferences effect demand
If their is a successful event e.g. Tour de France, the demand for cycling equipment increase
How does advertising and branding effect demand
An increase in the amount of money spent on advertising will increase the demand for the product
