Demand

Question 1

What is demand?

Answer 1

Demand is the willingness and the ability of customers to pay for a good or service.
Effective demand = genuine demand
Effective demand ≠ the desire to buy something

Question 2

What is the law of demand?

Answer 2

As the price of a product falls The demand will increase.
As the price of a product increases The demand will fall.

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Question 3

List the determinants of demand

Answer 3

•Habits Fashion Tastes
•Income
•Substitutes Complements
•Advertising
•Government Policies
•Economy
•Weather
•Size and Demographics