Deman d Flashcards
1
Q
What is the relationship between price and demand
A
It is negative as price increases demand decreases vice versa
2
Q
How does change in the price of substitutes affect demand
A
Substitutes goods are replacement,if the price of Ford increases demand for food may rise
3
Q
How does change in the price of complimentary goods change demand
A
Complimentary goods are goods that are consumed together
If the price of cars increase the demand for petrol falls
4
Q
What other factors are there
A
-Changes in consumer income-demand for normal increases with income
Demand for inferior goods increases with lower income
-Fashion taste and preferences
-Seasonality
-Demographxis
-External shocks
