2.3 demand Flashcards
1
Q
define demand
A
- willingness and ability
- of a consumer to buy a product
2
Q
law of demand
A
- as price increases, demand decreases
- as price decreases, demand increases
- ceteris paribus
3
Q
define market demand
A
- total demand for a product at different prices
- found by adding up each individual’s demand at different prices
4
Q
extension in demand cause and result
A
- fall in price
- quantity demanded increases
5
Q
contraction in demand cause and result
A
- rise in price
- quantity demanded decreases
6
Q
determinants of demand
A
Producing Paper Is So Incredibly Painful
- Price
- Preferences
- Income
- Substitutes/complements
- Interest rates
- Population
