1.2.1 - Demand

Question 1

Definition of Demand

Answer 1

Quantity of a good or service that consumers are willing and able to buy at a given price in a given time preiod

Question 2

What is the Law of Demand?

Answer 2

Relationship between price and quantity is inverse
- Price rises then quantity demanded falls

Question 3

7 Factors leading to change in demand (Acronym)

Answer 3

P - Population
I - Income
R - Related goods (substitutes)
A - Advertising
T - Tastes/Social changes
E - External shocks
S - Seasonality

Question 4

What way does the demand curve move if there is a decrease in demand?

Answer 4

Left

Question 5

What way does the demand curve move if there is a increase in demand?

Answer 5

Right