Demand Flashcards
1. define demand 2. *use a demand curve to show the difference between shifts of and movements along the demand curve.* 3. explain the causes of changes in demand (factors that cause the demand curve to shift)
1
Q
Define demand
A
demand is the amount of goods or services people are willing and able to buy at a given price over a period of time
3
Q
What is the relationship between price and demand?
A
inverse
3
Q
What does the demand curve look like?
A
a downward slope
4
Q
When demand increases, what direction will the curve shift to?
A
right
5
Q
When demand falls, what direction will the curve shift to?
A
left
6
Q
what are the factors that affect demand?
A
Compliments - goods that are bought together (e.g. toothbrush and toothpaste)
Advertising
Trends and tastes
Population (demographic) - age, ethnicities, gender
Income - an increase in income will increase demand for normal goods and decrease demand for inferior goods
Substitutes - if the price of coke increases, demand for pepsi increases.
