demand

Question 1

what is demand?

Answer 1

the amount of a good or service that consumers are both willing and able to buy at each possible price in a given period of time

Question 2

what is quantity demanded?

Answer 2

a particular quantity that the consumer is willing and able to buy at a particular price

Question 3

how is quantity demanded represented on the demand curve?

Answer 3

reflected by a point on a demand curve

Question 4

what does the law of demand state?

Answer 4

in a given period of time period, the quantity demanded of a product is inversely related to its price, ceteris paribus

Question 5

what does the law of diminishing marginal utility state?

Answer 5

beyond a certain point of consumption, as more units of a good or service are consumed, the additional utility derived from each additional unit consumed will fall

Question 6

what causes changes in demand?

Answer 6

changes in non-price determinants

Question 7

what changes quantity demanded?

Answer 7

changes in price determinants

Question 8

what are the non-price determinants?

Answer 8

E: expectations of price and income, ease of borrowing
G: government policies
Y: income (inferior and normal)
P: price of related goods, population size
T: tastes and preferences
S: seasonal factors

Question 9

how is a change in demand shown diagrammatically?

Answer 9

shown by a leftward/rightward shift of the whole demand curve

Question 10

how is a change in quantity demanded shown diagrammatically?

Answer 10

shown by movement of a point along the demand curve