Demand

Question 1

demand definition

Answer 1

the amount of goods and services that consumers are willing and able to buy

Question 2

law of demand

Answer 2

as price goes up, quantity demanded goes down

as price goes down, quantity demanded goes up

Question 3

quantity demanded

Answer 3

one specific time and point
shift ALONG curve
change in price

Question 4

demand on curve

Answer 4

combination quantities demanded

entire line shifts (left & right)

Question 5

determinants of demand characteristics

Answer 5

factors that cause demand curve to shift

something other than price

Question 6

determinants of demand

Answer 6

complements
income
taste
expected price change
substitutes

Question 7

demand vs aggregate demand

Answer 7

demand is an individual choice

aggregate is macro

Question 8

aggregate demand

Answer 8

total demand in economy

Question 9

what is aggregate demand measured by

Answer 9

NOT price
price level (CPI) and GDP

Question 10

gdp

Answer 10

total goods and services produced within country

Question 11

determinants of aggregate demand

Answer 11

consumer spending
business investment
government policies
net exports
BCGN

Question 12

aggregate demand curve characteristics

Answer 12

Y axis: PL
X axis: RGDP
Line: AD

Question 13

elasticity defintion

Answer 13

degree to which quantity demanded changes in response to a change in price

Question 14

elastic characteristics

Answer 14

small change in price results in big change in quantity demanded
if elasticity <1, demand is elastic

Question 15

inelastic characteristics

Answer 15

quantity demanded is not very responsive to change in price

if elasticity >1, demand is inelastic

Question 16

determinants of elasticity

Answer 16

ability to postpone purchase (postpone = elastic)
availability to substitute (substitute = elastic)
proportion of income consumed (big % = elastic)

Question 17

elastic ratio

Answer 17

old - new / old

% change in demand / % change in price