3 Demand Curve Flashcards
1
Q
Define effective demand
A
amount of good people are willing to buy at given prices over a period of time and if they can pay.
2
Q
A shift in the demand curve
A
If there is an increase in income the quantity demand will rise at the given price
3
Q
Factors that affect the demand curve
A
Income
Fashion and tastes
price of substitutes
price of compliment
demographic changes
4
Q
Define disposable income
A
Income that is available after paying the bills.
5
Q
Define inferior goods
A
goods for which demand will fall if income rises
6
Q
Define Normal goods
A
good for which demand will increase if income increases
