Demand notes Flashcards
1
Q
law of demand
A
the ability(money) and want to purchase a good
2
Q
what are the determinants of demand
A
-taste and preferences, -income, -population, -subs and comps, -price expectations, -norm and inferior goods
3
Q
taste and preferences
A
if you like it and it helps you- demand goes up
4
Q
income
A
income increase- increase in demand
income decrease- decrease in demand
5
Q
population
A
if there’s more people, there’s more demand
6
Q
subs and comps
A
substitutes: goods that can replace each other
compliments: goods that go together
7
Q
price expectations
A
if the future price will increase, demand for it today goes up.
is the future price will decrease, demand for it today will go down
8
Q
norm and inferior goods
A
normal good: strong economy
inferior goods: weak economy
9
Q
ability
A
money/cash
