2.3 Demand Flashcards
1
Q
What is demand?
A
the quantity buyers are willing to buy at a given price in a given time.
2
Q
What is effective demand?
A
for demand to be effective a consumer must be both willing and able to buy the good or service.
3
Q
What is a contraction in demand?
A
the fall in the quantity demanded due to a rise in price.
4
Q
What is an extension of demand?
A
the increase in quantity demanded due to a fall in price.
