2.2 Flashcards
demand
the quantity of a good or service they are willing and able to buy in a given time period
what does analysis mean?
use economic ideas, terms and concepts and diagrams
the law of demand
mostly, the quantity demanded depends inversely on its price
remember to label your diagram fully
YOU BETCHA
market demand
the total individual demands
movement along demand curve
the price changes leading to a movement up or down the demand curve.ONLY PRICE
shift of demand curve
a complete movement of the demand curve either outwards or inwards. NOT PRICE
causes for shifts in demand
income, marketing, trends, substitutes and complements ,population
subsidy
money the government give firms to encourage production and increase demand
tax
a compulsory payment to the government
consequences of movements along the demand curve
price and quantity move in opposite directions
