Demand Flashcards
What is Demand?
A 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 & 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 demand schedule is a table that sets out the quantity of a good or service that consumers are both willing & able to buy at any given price over a period of time.
What is a demand curve.
A demand curve is a graph that sets out the quantity of a good or service that consumers are both willing & able to buy at any given price over a period of time.
What is the law of demand?
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 viva versa assuming Ceteris Paribus.
What is Ceteris Paribus?
The term that all factors (apart from one) remain the same.
