Demand Flashcards
What is Demand ?
Demand is desire backed by the ability to pay otherwise it is a want.
What is the definition of demand ?
Demand is the quality 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 a 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 the 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 the 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.
