1.2.1 demand Flashcards
1
Q
1.2.1
what is demand?
A
is the amount of a good that consumers are willing and able to buy at a give price
2
Q
1.2.1
what factors affect demand?
A
- changes in consumer incomes
- substitute + complementary goods
- demographics
- external shocks
- trends
3
Q
1.2.1
how can you show the relationship between price and quantity demanded?
A
using a demand curve
4
Q
1.2.1
as price falls quantity demanded _____?
A
as price falls quantity demanded rises
5
Q
1.2.1
as price rises quantity demanded ______?
A
as price rises quantity demanded falls
6
Q
1.2.1
how is an increase in demand shown on a diagram?
A
an increase in demand is shown by a shift to the right
7
Q
1.2.1
how is a decrease in demand shown on a diagram?
A
a decrease in demand is shown by a shift to the left
8
Q
1.2.1
what three types of goods are there?
A
- necessities
- luxuries
- inferior goods
