Demand-7 Flashcards
What is demand in terms of an economist?
Demand is the number of people who are willing and able to buy a product or service.
How is demand related to price?
Demand is inversely related to price, meaning that when price rises, demand falls, and when price drops, demand rises. Also, if the price of a product gets unreasonably high, customers will go to rival products.
What is a demand schedule?
A demand schedule shows the demand for products at different prices. It is demonstrated in tabular forms(In a table)
What is a demand curve?
A demand curve shows what a demand schedule shows, but in a graph where the price is on the y axes and the quantity demanded is on the x axes. To save time, economists usually draw a straight line instead of a curve.
What is individual demand?
Individual demand is the quantity of a product or service demanded by an individual person at a certain price.
What is market demand?
Market demand is the total demand made by adding up all the individual demand for a product or service at a certain price.
What is an extension in demand?
An extension in demand is when the price of a product drops because the firm wants more demand.
What is a contraction in demand?
A contraction in demand is caused by a rise in price and a fall in demand.
What is the condition of demand?Give an example.
The condition of demand states that other factors can also effect the quantity of a product (not only price). For example,, during a hot period, the demand for ice-cream will increase no matter what the price is. The demand will also increase for all prices.
What are the factors that effect demand?
- Changes in income
- Changes in taste and fashion
3.Advertising campaigns
4.Changes in population - Change in the price of related products.
What is a normal good?
A normal good is one whose demand increases when income increases and falls when income decreases.
What is an inferior good?
An inferior good is a good whose demand decreases when income increases and increases when income falls.
What is a substitute good?
A substitute good is a good that can be used in place of another good.
What is a compliment good.
A complementary good is a good that has to be used in combination with another good.
What is the aging rate?
The increase in the average age of the population.
