Demand Flashcards
1
Q
What is the demand?
A
Demand is the ability and willingness to purchase goods and services.
2
Q
What is the law of demand?
A
The law of demand is people willing and able to purchase something at any given price.
3
Q
Expansion in demand
A
An expansion in demand occurs when the quantity demanded rises due to a price decrease.
4
Q
A contraction in demand
A
A contraction in demand occurs when quantity demanded falls due to a price increase.
5
Q
Factors of demand
A
- Incomes
- Cost of credit
- Substitute costs/availability
- Complimentary goods/services
- Tastes and preferences
- Advertising and quality
6
Q
Decrease in demand
A
A decrease in demand leads to the curve shifting to the left
7
Q
Increase in demand
A
An increase in demand leads the demand curve shifting to the right.
