1.2.2 Demand

Question 1

demand

Answer 1

the desire and willingness to purchase a product at a given price

Question 2

effective demand

Answer 2

willingness and ability to purchase a product at a given price

Question 3

law of diminishing marginal utility

Answer 3

the utility gained from extra units decreases when you already have units

Question 4

law of demand

Answer 4

inverse relationship between price and quantity demanded

Question 5

difference between a demand curve shift and shifts in demand

Answer 5

shifts in demand is demand changing due to a change in price
a demand curve shift is when there is a change in the conditions of demand

Question 6

demand shift causes (conditions of demand)

Answer 6

change in taste
increase of the price of complementary goods
decrease of the price of substitute goods
change in real income
successful/unsuccessful marketing

Question 7

what are substitute goods

Answer 7

when the price of good X increases, the demand for good Y increases
e.g. coke and pepsi

Question 8

what are complementary goods

Answer 8

when the price of good X increases, the demand for good Y decreases
e.g. ink and printers

Question 9

ods