Demand Flashcards
What is demand?
A demand is a desire backed by the ability to pay. Otherwise it is a want
What is the definition of demand?
Demand is the quantity of a good or service that consumers are both willing and able to buy at any given price over a period of time.
What is willing and able mean?
Willing is you want to have it and able - you have the money to purchase it. You will use the money to purchase it. Willing is a want. WIlling + able is a demand.
What is the definition of a demand schedule?
A table that sets out the quantity of a good or service that a consumer is willing and able to buy at a range of prices within a given time frame.
What is the definition of Law of Demand?
An increase in the price of a good or service will result in a decrease in the quantity demanded or vice versa assuming Ceteris Paribus.
What is definition of Ceteris Paribus?
All other factors apart from one stay the same.
What is a demand curve?
A graph showing the quantity of a good or service that consumers are both willing and able to buy at any given price over a certain period of time.
