Demand Flashcards
1
Q
An increase in demand shifts the curve to the
A
right
2
Q
A decrease in demand shifts the curve to the
A
left
3
Q
TRIPE
A
T- tastes and preferences R- related goods I- income of consumers P- Population E- Expectations
4
Q
Does price shift the demand curve?
A
No
5
Q
Complements move
A
apart
6
Q
Substitutes move
A
together
7
Q
Demand for normal goods increases when
A
income increases
8
Q
Demand for inferior goods increases when
A
income decreases
9
Q
Law of Demand
A
as price rises, demand falls, and vice versa
10
Q
why does the law of demand exist
A
- income effect
- substitution effect
- diminishing marginal utility
11
Q
two key aspects of demand
A
customer must be willing and able
