Chapter 8- demand Flashcards
1
Q
Effective demand
A
is the combination of desire for a product/service with the ability and readiness to pay.
2
Q
consumer sovereignty
A
suggests that consumers control resource use by deciding what to buy.
3
Q
determinants of demand
A
price income substitutes tastes advertising population complementary goods
4
Q
taste
A
involves consumer preferences for specific products. These change over time and are influenced. (fickle market)
5
Q
demand falls when…
A
the demand curve moves left
6
Q
demand increases when…
A
the demand curve moves to the right
