1.2.2 - Demand Flashcards
1
Q
Demand definition
A
Quantity of a good or service that consumers are willing and able to buy at a given price at a given time period
2
Q
50,000 consumers want a concert ticket. Only 12,500 have the ability to pay. What is demand equal to?
A
12,500.
3
Q
Demand curve
A
A demand curve shows the relationship between the price of an item and the quantity demanded over a period of time. E.g. for normal goods, more of a product will be demanded as the price falls.
4
Q
Excess demand
A
When quantity demanded exceeds quantity supplied. When price is set below the equilibrium price
