demand

Question 1

define demand

Answer 1

the willingness and ability to purchase a good or service

Question 2

is the demand curve sloping down or up

Answer 2

down

Question 3

what factors influence demand

Answer 3

PASIFIC - population, advertising, substitutes (price of), income, fashion, interest rates, complements

Question 4

what is market demand

Answer 4

total demand for a good or service

Question 5

what is an outwards shift on a demand curve

Answer 5

more is demanded at each price level, caused by non-price factors

Question 6

what is a movement on a demand curve

Answer 6

contraction or expansion of the demand curve, caused by price changes

Question 7

what is a contraction on the demand curve

Answer 7

fall of demand due to an increase in price

Question 8

how can interest rates affect demand

Answer 8

some goods are purchased with borrowed money e.g. a credit card where the consumer has to pay interest to the lender

Question 9

how can population affect demand

Answer 9

higher the population you have the more people there will be who will be able to purchase a good at any given price leading to an outward shift in demand if population increases

Question 10

what is the law of diminishing marginal utility

Answer 10

as consumption of a product increases, utility decreases