1.2.2 demand

Question 1

demand (def.)

Answer 1

the amount of a good/service that a consumer is willing and able to buy over a range of prices in a given time period

Question 2

quantity demanded (def.)

Answer 2

the amount of a good/service a consumer is willing and able to buy at a given price in a given time period

Question 3

what causes a movement along the demand curve?

Answer 3

a change in the price of the good

Question 4

what causes a shift of the demand curve?

Answer 4

a change in any of the factor which affect demand (PASIFIC)

Question 5

what are the non-price determinants of demand? (PASIFIC)

Answer 5

population

advertising

substitute goods

income

fashion/trends

interest rates

complementary goods

Question 6

marginal utility (def.)

Answer 6

the additional utility (satisfaction) gained from the consumption of an additional product

Question 7

what is the law of diminishing marginal utility?

Answer 7

as additional products are consumed, the utility gained from the next unit is lower than the utility gained from the previous unit