Demand and Supply

Question 1

What is Demand?

Answer 1

Demand is the willingness and ability of consumers to purchase a given amount of a good or service at a given price.

Question 2

What are the types of Demand?

Answer 2

*Effective Demand
*Derive Demand
*Individual Demand
*Market Demand

Question 3

What is effective demand?

Answer 3

Effective demand is when a consumer not only desires a product, but has the willingness and ability to purchase that product.

Question 4

What is derive demand?

Answer 4

The demand for a good or service that results from the demand for a different, or related, good or service

Question 5

What is Individual demand?

Answer 5

Individual demand is the demand by one individual for a good/service given the factors of demand.

Question 6

What is Market demand?

Answer 6

Market demand is the total/sum of all individual demand in a market at each price level.

Question 7

Demand Curve

Answer 7

When plotting the Market demand curve, your price is to be on the y-axis (|), and quantity demanded on the x-axis(_)

Question 8

What are the laws of demand?

Answer 8

• If the price of good rises, the quantity demanded
  of that good decreases.
• If the price of a good falls, the quantity
  demanded of that good increases.