demand

Question 1

demand

Answer 1

the amount of a good that consumers are willing and able to buy at a given time

Question 2

effective demand

Answer 2

demand backed by the ability to pay

Question 3

what does the amount of good demand depend on

Answer 3

price of good
income of consumers
demand for substitutes
demand for complements
consumer taste

Question 4

what is a contraction of demand

Answer 4

If price increases and demand decreases

Question 5

how does a change in complimentary goods affect demand

Answer 5

If there is increased demand for a complimentary good then there will be increased demand for the product e.g a car and petrol

Question 6

how does a change in substitute goods affect demand

Answer 6

if the price of a substitute good increases, then demand for the product increases as they can get the same product for cheaper

Question 7

how does a change in fashion, tastes and preferences affect demand

Answer 7

consumer will demand a product that is in fashion

Question 8

how does advertising and branding affect demand

Answer 8

increased advertising means increased awareness of the product which increases demand. A popular brand may be highly desirable

Question 9

how do demographics affect demand

Answer 9

a change in family structures will affect demand e.g more single working mothers increases demand for child care

Question 10

how do external shocks affect demand

Answer 10

something happening around the world may have a direct affect on demand e.g a plane crash would lead to a decrease in demand for airport hotels

Question 11

how does seasonality affect demand

Answer 11

certain products have an increase demand depending on seasonality e.g baubles at christmas