Demand Flashcards
What is Demand?
Demand is the 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 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 consumers are both willing and able to buy at any given price over a period of time.
What is a Demand Curve?
A graph that sets out 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 the Law of Demand
States that an increase in the price of a good or service will result in a decrease in the quantity demanded or vise-versa assuming Ceteris Parabus
What is Ceteris Paribus?
The term that all factors (apart from one) remain the same
