1.2.2 Flashcards
1
Q
Demand
A
The quantity of a good/service that consumers are willing and able to buy at a given price at a given moment in time
2
Q
What shifts the demand curve
A
PIRATES
P- population
I- income
R- related goods
A- advertising
T-tastes and fashions
E-expectations
S-seasons
3
Q
Types of demand
A
Derived demand
Composite demand
4
Q
Derived demand
A
When one good is linked to the demand of a related good
5
Q
Composite demand
A
The good demanded has more than one use
6
Q
Diminishing marginal utility
A
law of diminishing marginal untility states that as an extra unit of the good is consumed,the benefitfrim consuming the good falls
