Demand Flashcards
1
Q
What is demand?
A
the level of interest customers have in buying a product
2
Q
Factors affecting demand
A
Prices advertising price of complementary products price of substitute product income levels tastes/ preferences seasonality demographics external shocks
3
Q
Define complementary goods
A
goods that are bought and used together e.g car and petrol
4
Q
Define Inferior Goods
A
a good whose quantity demanded decreases when consumer income rise
5
Q
what are Luxury goods
A
goods which aren’t necessary but which tend to make life more pleasant for consumer, people with higher disposable income
6
Q
What are normal goods
A
as income levels change the demand levels change along with it
7
Q
Seasonality is…
A
when particular seasons have a higher demand, for example, puffer coats in winter
8
Q
Substitutes are products in competition so the customer will _______
A
substitute one for the other
