Demand

Question 1

Joint (complementary demand)

Answer 1

Go together e.g. printers and printer ink

Question 2

Derived demand (input demand)

Answer 2

Demand comes from demand of something else, e.g. D of cars increase- D of aluminium increases

Question 3

Composite demand

Answer 3

More production of cheese-uses more milk- less milk to make butter- lower quantity of butter

Question 4

Demand

Answer 4

The quantity of a good/service consumers are willing and able to buy at a given price in a given time period

Question 5

Law of demand

Answer 5

There is an inverse relationship between price and quantity demanded, assuming Ceteris paribus.

Question 6

Why is there an inverse relationship between price and quantity demanded

Answer 6

Income effect- If prices go up, our income may not allow us to buy the same amount of goods/services as before

Substitution effect-As prices go up- consumers might switch to a cheaper alternative-other goods/services become more price competitive

Question 7

Non-price factors

Answer 7

Same price-shift in demand

Question 8

Pasific

Answer 8

Population
Advertising
Substitutes price
Income-normal/inferior
Fashion/tastes
Interest rates-Loans
Complement’s price- one item brought with another.

Question 9

Normal goods vs inferior goods

Answer 9

Normal- income increase, demand increase e.g. expensive cars

Inferior- income decrease, demand increase e.g. fast food, public transport