Demand Flashcards
1
Q
What is a substitute good?
A
Goods that can be purchased as an alternate for another good that has the same function.
2
Q
What are the factors leading to a change in demand?
A
- Price of substitutes.
- Price of compliments.
- Change in consumer incomes.
- Fashion, tastes and preferences.
- Advertising and branding.
- Demographics.
- External shocks
- Seasonality.
2
Q
What is a complimentary good?
A
Goods that are purchased together because they are consumed together.
3
Q
What is demand?
A
What customers are able/ willing to buy.
4
Q
A
