chapter 7 - demand Flashcards
1
Q
definition of:
demand
A
refers to the willingness and ability of consumers to pay for a product at different price level
2
Q
determinants of demand
A
- habits fashion and taste
- income
- substitutes and complements
- advertising
- government
- economy
3
Q
definition of:
contraction
A
a fall in quantity demanded for a product following an increase in its price
4
Q
definition of:
extension
A
an increase in quantity demanded following a decrease in its price
5
Q
definition of:
quantity demanded
A
the amount of good and services demanded at each price level
7
Q
definition of:
market demand
A
the sum of all individual demand for a product
8
Q
what causes movement along demand curve?
A
change in its price
9
Q
what causes a shift in demand curve?
A
non- price factors (HIS AGE)
