demand

Question 1

what is demand?

Answer 1

demand is the willingness and ability of a consumer to purchase a good or service

Question 2

what is the law of demand?

Answer 2

when demand increases price decreases

Question 3

state all the determinants of demand.

Answer 3

habits,income, substitutes and compliments, advertising,government, economy

Question 4

what are the causes of movements in the demand curve?

Answer 4

changes in price leads to movement in the demand curve

Question 5

what is a contraction?

Answer 5

when demand reduces due to an increase in price

Question 6

what is an extension?

Answer 6

when demand increases due to a fall in price

Question 7

what is market demand?

Answer 7

the total demand for a good or service in a market

Question 8

what causes shifts in the demand curve?

Answer 8

changes in non-price factors. a decrease in demand is shown on a graph by moving the curve to the left while an increase in demand is shown on a graph by moving the curve to the right