Demand Flashcards
1
Q
What is demand?
A
The quantity that purchasers are willing to buy at any price in a given period of time.
2
Q
What is effective demand?
A
Only if demand for a product is backed up by a willingness and ability to pay the market price does demand become effective or actual.
3
Q
What is the basic law of demand?
A
Demand varies inversely with price. When products have lower prices, it becomes more affordable for consumers.
4
Q
What are the respective names for when you go up and down on a demand curve?
A
When you go up, it’s called a contraction. When you go down, it’s called an extension.
