5 Demand Flashcards

1
Q

Demand

A

A consumer’s willingness and desire to purchase goods and services at a specific price

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2
Q

Individual demand

A

one consumer’s willingness and ability to purchase goods and services at a given price

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3
Q

Market demand

A

the sum of all consumer’s willingness and ability to purchase goods and services at a given set of prices

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4
Q

Demand curve

A

Relationship between the price of product and the quantity demanded by the market

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5
Q

Joint demand

A

When products are demanded together - they are complements

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6
Q

competitive demand

A

When consumers demand one or the other product - the products are substitutes

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7
Q

composite demand

A

When a product is demanded for multiple possible uses

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8
Q

Movement along the demand curve

A

Change in the quantity demanded that results from a change o the price of a product

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9
Q

Contraction in demand

A

when there is an increase in price which decrease the quantity demanded

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10
Q

extension in demand

A

when there is an decrease in price which increase the quantity demanded

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11
Q

Increase in demand

A

A shift outward of the demand curve so that there is an increase in the quantity demanded at every price

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12
Q

decrease in demand

A

A shift inward of the demand curve so that there is an decrease in the quantity demanded at every price

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13
Q

Factor shifting demand curve (Income)

A
  • How much money a consumer has affects their willingness and ability to purchase goods and service at different price levels
  • luxury and normal goods vs inferior
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14
Q

Factor shifting demand curve (The price of complementary goods)

A
  • in joint demand
  • price of one increases the demand for other good decreases
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15
Q

Factor shifting demand curve (The price of substitute goods)

A
  • in competitive demand
  • price of one increases the demand for other good increases
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16
Q

Factor shifting demand curve (tastes and fashions)

A

if people start to enjoy a good or service more or it becomes more fashionable then demand is likely to increase

17
Q

Factor shifting demand curve (Advertising and marketing)

A

The aim of most marketing is to increase demand for good or service i.e. persuading more people to purchase

18
Q

Factor shifting demand curve (size of population/target market)

A

i.e. growing number of pensioners leads to an increase in the demand for pensioner holidays