1.2.2 Flashcards
1
Q
What causes an expansion or contraction in demand?
A
A change in price.
2
Q
Name 2 things that cause a change in demand
A
- Increase in population
- Price of substitues
- Successful advertising campaign
- Change in income
- Change in trends
3
Q
What’s diminishing marginl utility?
A
The consecutive consumption of a good or service results in a decrease in satisfaction.
4
Q
Define demand
A
Quantity of a good or service that consumers are willing and able to buy at a given price in a given time period
5
Q
Draw a supply and demand diagram
A
- Y axis = Price Level
- X axis = QD
- Supply Line
- Demand Line
- Equilibrium points and lines
- Labels along the axis
