Demand

Question 1

Demand

Answer 1

Is the amount of a product consumers are willing and able to buy at various prices

Question 2

Demand curve

Answer 2

Plots combinations of price and quantity demanded

Question 3

Own price

Answer 3

Selling price of a product

Question 4

Non own price factors that affect demand. (List)

Answer 4

Consumer income

Price and availability of substitutes

Price of and availability of compliments

Fashion, taste and consumer preferences influenced by advertising and branding

Demographics ie population structure: size and composition

External shocks

Seasonal factors

Question 5

Normal goods

Answer 5

Are products whose demand rises as income rises

Question 6

Inferior goods

Answer 6

Are products whose demand falls as income rises

Question 7

Substitutes

Answer 7

Are alternative products consumers can buy to satisfying a given need eg butter and margerine

Question 8

Compliments

Answer 8

Are products consumers use together eg cars and petrol.