Demand(1.2.1)

Question 1

What is demand?

Answer 1

the amount of a product/service that consumers are willing and able to purchase at a given price in a given time

Question 2

What are complementary goods?

Answer 2

goods that are purchased together because they are suitably paired (complement each other)
e.g. cars and petrol

Question 3

What are substitute goods?

Answer 3

goods that can be bought as an alternative to others yet perform the same (may be very different)
e.g. Pepsi and Coca-Cola

Question 4

What type of relationship there between demand and substitue?

Answer 4

there is a clear relationship between the demand for a product and the price of its substitutes

Question 5

Five non-price factors that affect demand

Answer 5

fashion tastes and preferences
demographic
external shocks
seasonality
advertising and branding

Question 6

What is normal goods?

Answer 6

increase in normal goods
decrease in inferior goods
increase in disposable income

Question 6

What is inferior goods?

Answer 6

decrease in normal goods
increase in inferior goods
decrease in disposable income

Question 7

Example of inferior good

Answer 7

own brand

Question 8

Example of normal good

Answer 8

standard quality

Question 9

What does a shift to the right indicate on a graph?

Answer 9

increase in demand for non-price factors

Question 10

What does a shift to the left indicate on a graph?

Answer 10

decrease in demand for non-price factors

Question 11

Simple demand curve

Answer 11