Demand Flashcards
What is demand
A demand is a desire backed by 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 range of prices over a period of time.
What is willing and able
Willing is you want to buy it and Able is you have the means 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 graph 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
That an increase in the price of a good or service will result in a decrease in the quantity demand or vice versa assuming Ceteris Paribus.
What is Ceteris Paribus
The term that all factors (apart from one) remain the same.
