Demand Flashcards
1
Q
What factors affect demand?
A
Popularity
Advertising
Substitutions
Indirect tax
Fashion/trends
Income
Complements
2
Q
Explain the concept of price elasticity?
A
The response to quantity demanded to the change in price
3
Q
What is income elasticity of demand:?
A
The responsiveness to demand to the change in income
4
Q
Describe cross-price elasticity of demand
A
The responsiveness to demand in good A to the change in price to good B
5
Q
What are complementary goods?
A
When the price of good b rises, the demand of good a decreases
