Demand Flashcards
What is Demand?
Demand is a desire backed with the ability to pay.
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?
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 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 a demand curve?
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 Law of Demand?
States that an increase in the price of a good or service will result in a decrease in the 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.
