demand quiz Flashcards
what is demand?
the want to purchase goods or services
people must be ___ & ____ to purchase a good or service
willing & able
The Law of Demand states that as the price of a good increases, the quantity demanded…?
decreases
The Law of Demand states that as the price of a good decreases, the quantity demanded…?
increases
what type of relationship is the law of demand called?
inverse relationship
what is the difference between demand and quantity demanded?
demand is simply the willingness and ability to buy something
quantity demanded is the number of units purchased at a specific price
what does the Law of Diminishing Marginal Utility state?
as a person consumes additional units of a good, eventually the utility gained from each additional unit of the good decreases.
the more utility (satisfaction) you receive from a good…
the higher the price people are willing to pay for it
the less utility (satisfaction) you receive from a good…
the lower the price people are willing to pay for it
what is a demand schedule?
the numerical representation of the Law of Demand
what is a demand curve?
the graphical representation of the Law of Demand
when you talk about ____, you talk about ____!
price, quantity
quantity, price
what does a change in demand mean?
demand itself changed (or shifted left or right while price remained the same)
what does a change in quantity demanded mean?
its own price changed (or a movement along the same curve)
when demand INCREASES, the demand curve ___ to the ___!
shifts, right
