Demand Flashcards
If scientists discover that eating bacon reduces cholesterol levels, then what will happen to the bacon demand?
It will increase
On a demand graph, which axes will price and quantity be on
Price = y axis ; quantity = x axis
What will an increase in the price of peanut butter cause?
The demand curve for jelly will shift to the left
What does the Law of Demand state?
As price increases, quantity decreases
Why does the demand curve slop downward?
An inverse relationship between price & quantity demanded
What would an increase in the number of consumers in the market for chocolate cause?
The demand curve to shift to the right
Define Demand
The quantity of a good or service that buyers are willing and able to buy at all possible prices
What are the 2 components of demand?
Willingness to purchase and ability to pay
What types of conditions in the market may change the demand curve?
Change in quantity demanded & change in demand (not when prices change)
