Demand Flashcards

1
Q

studies economy through behavior of individuals

A

Microeconomics

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2
Q

Microeconomics central idea

A

Market

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3
Q

Demand ? to buy a good or service at a given price and time

A

willingness and ability

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4
Q

? + ?

A

• desire + purchasing power

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5
Q

Demand is ? Proportional

A

Inversely

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6
Q

The factor/s of demand

A

Price is the only

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7
Q

change in price affects purchasing power

A

•income effect

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8
Q

change in price of substitute goods affects demand ot
Other goods (brands)

A

substitution effect -

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9
Q

consume until utility=cost

A

law of diminishing marginal utitlity-

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10
Q

mathematical representation of demand

A

Demand function:

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