Demand

Question 1

What is Demand?

Answer 1

Demand is the desire backed by the ability to pay

Question 2

What is the definition of demand?

Answer 2

Demand is the quantity of a good or service that consumers are both willing and able to buy at any given range of prices over a period of time

Question 3

What is willing and able?

Answer 3

Willing - you want to buy it
Able - you have the means (money) to buy it
You must have both for demand to occur

Question 4

What is a demand schedule?

Answer 4

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

Question 5

What is a demand curve?

Answer 5

A graph 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

Question 6

What is the law of demand?

Answer 6

states that 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

Question 7

What is ceteris Paribus?

Answer 7

The term that al factors (apart from one) remain the same