Chapter 8 Flashcards
1
Q
What is demand?
A
The quantity of goods or services that will be bought at a given price over a period of time.
2
Q
What does the demand curve show?
A
The relationship that the lower the price the higher thr quantity demanded.
3
Q
What is the name for an increase in demand?
A
An extension of demand
4
Q
What is the name of a decrease in demand?
A
Contraction of demand
5
Q
What is effective demand?
A
How much the consumer can afford, not desire.
6
Q
What are conditions of demand?
A
Factors that effect demand ( shift the curve) e.g:
Competitors (price)
Consumer income
Price
Fashion
Future supply and price
Population
7
Q
What is the law of diminishing utility?
A
The idea that utility increases with the wealth at a diminishing return (amount).
8
Q
What is utility?
A
Satisfaction gained by consuming.
