1.2.1 Demand

Question 1

definition demand

Answer 1

quantitiy of a product or service that consumers are willing and able to buy at various prices

Question 2

price and demand

Answer 2

price and demand are related
as the price on a product service rises, the demand will decrease as fewer customers are willing or able to pay the price
as the price on a product service decreses, the demand will increase as more customers are willing or able to pay the price

Question 3

non-price factors that influence demand

Answer 3

price of substitutes
alternative brands
price of complimentary goods
changes in consumer income
trends
marketing (e.g. McDonalds monopoly run every year)
demographics
time of the year
wether climat
external shock

Question 4

demand curve

Answer 4

\

Question 5

demand curve shift to right

Answer 5

\ –> \
higher quntity

Question 6

demand curve shift to left

Answer 6

<– \
lower quantity

Question 7

demand curve movement

Answer 7

— l
—-l–l
\ l l

up more price
down less price

right more quantity
left less quantity

Question 8

demand curve definition

Answer 8

The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers over a specific period of time.

Question 9

why demand curve shift to right

Answer 9

The good became more popular (e.g. fashion changes or successful advertising campaign)
The price of a substitute good increased.
The price of a complement good decreased.
A rise in incomes (assuming the good is a normal good, with positive YED)
Seasonal factors.

Question 10

why demand curve shift to left

Answer 10

Decrease in Income
If a product becomes less popular
Increase in Price of a Complementary Good
Decrease in Price of a Substitute Good ( cheaper alternative )
Expectations of Future Price Drops
A decline in population or changes in age distribution
Higher taxes, stricter regulations, or bans
Recession