Demand

Question 1

What are on the x and y axis on a demand curve

Answer 1

x: quantity
y: price

Question 2

What does the law of demand state

Answer 2

As price increases,quantity demanded decreases

Question 3

As price increases there is a … in the demand curve
Fill in the blank

Answer 3

contraction

Question 4

As price decreases there is a … in the demand curve
Fill in the blank

Answer 4

extension

Question 5

What are the factors that affect demand

Answer 5

-advertising
-trends
-income of the buyer
-population (higher population,higher demand)
-price of related goods (substitutes/compliments)
-season

Question 6

What is an inferior good

Answer 6

Goods that have increased demand when income decreases
-water

Question 7

What is a normal good and give an example

Answer 7

goods that have an increased demand when incomes increase
-luxury clothes

Question 8

What does a change in PRICE cause on the demand curve

Answer 8

Movement along the curve (extension/contraction)

Question 9

What does a change in non-price factors do to the demand curve

Answer 9

Shift (left/right)