Demand Flashcards
1
Q
Demand
A
The quantity/service consumers are willing and able to buy at a given price in a given time period
2
Q
Law of demand
A
Inverse relationship between price and quantity demanded. As price increases, quantity demanded decreases/ price decreases, quantity demanded increases assuming cetris paribus
3
Q
What happens when price increases
What happens when price decreases
A
Price increase quantity demanded decreases
Price decrease quantity demanded increases
4
Q
Ceteris Paribus
A
All other things are equal
5
Q
What is contraction of demand
A
When price move up, causing quantity demanded to decrease
6
Q
Extension of demand
A
Price decreases and quantity demanded increase
7
Q
How to show changes in quantity demand shown by movement along demand curve
A
Contraction of demand
Extension of price
8
Q
P A S I F I C
A
Population Advertising Substitute’s price Income [Normal/ Inferior] depends Fashion / Taste Interest rates Complement’s price
