Demand (Week 2) Flashcards
1
Q
Price down=
A
Expand of demand
2
Q
Price up=
A
Contraction of demand
3
Q
What does a shift on a demand curve show
A
An increase in demand (price stays constant)
4
Q
What are the 4 things that can cause a shift (increase/decrease) in demand
A
Taste, Related goods, Income, Population, Expectations
5
Q
What is effective demand
A
The ability and willingness to purchase a product/ service at a given price
6
Q
What is the law of demand
A
If price increases, demand decreases and vice verse (negative/inverse relationship)
7
Q
What is derived demand
A
Demand generated for a factor of production given a change in the demand for the good it produces
