1.2.2 demand

Question 1

The distinction between movements along a demand curve, shifts of a demand curve and demand definition

Answer 1

demand is the amount of people able and willing to buy a good at a given price at a given time

movement along the demand curve is caused by a change in price

shift of the whole curve is caused by a change in factors that affect demand

Question 2

The factors that may cause a shift in the demand curve (the conditions of demand)

Answer 2

• population
• income
• related goods
• advertising
• taste/fashion
• expectations
• seasons
• legislation

Question 3

The concept of diminishing marginal utility and how this influences the shape of the demand curve

Answer 3

this explains why the demand curve slops downwards.

diminishing marginal utility is the concept where the satisfaction/utility from every extra unit consumed decreases

this shows that consumers are less willing to pay high prices at high quantities