Demand Flashcards
What is Demand?
A demand is a desire backed by the ability to pay.
What is the Definition of Demand?
The quantity of good or services that consumers are both willing and able to buy at any given price or a period of time.
What is Willing and Able?
Willing: you want to buy it.
Able: you have the means (money) to buy it.
You must have both for demand to occur.
What is a Demand Schedule?
A table of that sets out the quantity of a good or services that a consumer is willing and able to but at a range of prices within a given time frame.
What is a Demand Curve?
A graph of that sets out the quantity of a good or services that a consumer is willing and able to but at a range of prices within a given time frame.
What is the Law of Demand?
States that an increase in the price of a good or services will result in a decrease in the quantity demanded or vice versa assuming ceteris paribus.
What is Ceteris Paribus?
The term that all factors (apart from one) remain the same.
