1.2.2 Demand Flashcards
1
Q
Demand
A
the quantity of a good or service that consumers are able and willing to buy at a given price
2
Q
Effective Demand
A
when there is a willingness and ability to pay
3
Q
Relationship between Qd and P
A
inverse relationship
4
Q
Factors for the demand curve sloping downwards
A
- The income effect
- The substitution effect
- DMU
5
Q
Normal vs Inferior goods
A
Normal - as income rises, demand also rises
Inferior - cheaper, lower quality goods
