Demand

Question 1

What is demand?

Answer 1

Demand is the desire backed with 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 price 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 do 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 any given 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 any given 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 all factors (apart from one) remain the same.