demand Flashcards
What is demand?
The quantity of a good or service that consumers are willing and able to buy at a given price in a given period of time
What is derived demand?
The demand that comes about due to the demand for another product
What is the law of demand?
As the price increases demand decreases, as the price decreases demand increases
What is individual demand?
Each individual will have their own demand curve for a good or service.
What is market demand?
The total demand for a good or service
What is a shift of the demand curve?
When the demand curve shifts, The quantity demanded at price changes.
What is a movement along a demand curve?
when price moves up or down
What causes a shift of the demand curve?
Non-price factors only
What causes a movement along a demand curve?
Changes in price only
What 2 directions can the demand curve shift?
Left or right
Has demand increased or decreased if it shifts to the right (outward)?
Demand has increased
Has demand increased or decreased if it shifts to the left (inward)?
Demand has decreased
What are 8 non-price factors that could cause a shift in demand?
Income, Marketing, Tastes & fashion, Substitutes & complements, population, government policies, economic situation, price expectations
What are the consequences of the shift of the demand curve?
Most important consequence is that for nearly all products, it will lead to the price and quantity of the good moving in the same direction
