Demand

Question 1

Demand

Answer 1

The willingness and ability to purchase a good or service at the given price and time period

Question 2

Law of demand

Answer 2

For most products, the quantity demanded varies inversely with its price

Question 3

Individual demand

Answer 3

The demand for a good or service by an individual consumer

Question 4

Market demand

Answer 4

The total demand of a good or service found by adding together all individual demand

Question 5

Movement along the demand curve

Answer 5

When the price changes, leading to the movement up or down the existing demand curve

Question 6

Shift in the demand curve

Answer 6

A complete movement of the existing demand curve either outward (to the right) or inward (to the left)

Question 7

Subsidy

Answer 7

An amount of money the government gives directly to firms to encourage production and consumption

Question 8

Tax

Answer 8

A compulsory payment to the government

Question 9

Elastic demand

Answer 9

When the percentage change in quantity demanded is greater than the percentage change in price.

Question 10

Inelastic demand

Answer 10

When the percentage change in quantity demanded is less than the percentage change in price

Question 11

Price elasticity of demand (PED)

Answer 11

The responsiveness of quantity demanded to a change in the price of the product.