Demand Flashcards
what is supply and demand ?
supply and demand is the relationship between the quantity producers supply and the price consumers are willing to pay
what is a market?
a market is a place buyers and sellers come together to exchange goods and services
what is a sub-market ?
a sub market is a broken down into similar characteristics e.g shoes for men
name 5 factors that affect demand ?
- price
- external e.g pandemic
- technology
- Brand
- income
what is demand ?
demand is the amount society is willing and able to buy at a set price at a given time
factors that affect price ?
- consumer income
- advertising
- prices of other goods and services
list Factors that cause a shift in demand ?
- changes in consumer taste
- changes in consumer income
- changes in price of a substitute
- change in price of a complement
what is composite demand ?
composite demands are goods that have multiple uses
e.g steel
therefore the increase in demand for one good would lead to a decrease in supply of another good
what is derived demand ?
derived demand is when FOP are used to provide another good or service .
e.g an increase in demand air travel would lead to an increase in air pioltes
what is the income effect ?
The income effect is that when price falls down consumers can afford a greater quantity of good/services . so the demand for the good increases
what is substitution effect ?
this is when the price of one good falls, consumers will buy more of the cheaper good/service rather than the costly one
what is composite demand?
composite demand is when a good has multiple uses
e.g steel or wheat .
what is a competitive market ?
a competitive market is when buyers and sellers have no influence on the price for products .
what is individual demand ?
individual demand is the willingness and ability to buy a good /service at any given price
what is market mechanism ?
market mechanism is when consumers and sellers come in contact in order to exchange goods or a service.
