Demand And Supply Analysis Flashcards
1
Q
What is demand defined as?
A
The quantity of a good or service that customers are willing to buy at a given price in a given time period
2
Q
A change in price for a good itself causes a movement along what curve?
A
Demand curve
3
Q
A fall in price on the price curve causes what?
A
An expansion in quantity demanded
4
Q
A fall in price on the price curve causes what?
A
An expansion in quantity demanded
5
Q
A shift in demand curve to the right will what?
A
Raise prices and expand the quantity supplied.
If there is an excess supply the firm will have to redice prices to shed stock
