Determinants of Demand

Question 1

Demand

Answer 1

A consumers desire to purchase goods and services and willingness to pay a specific for them

Question 2

Quantity demanded

Answer 2

The number of a particular good/service that consumers are willing to buy at a particular price

Question 3

Individual demand curve/ Market demand curve

Answer 3

Individual: Shows single good/service
Market: Sum of individual demand curves

Question 4

Purpose of Demand Curve

Answer 4

It shows the relationship between P and Q demanded (any given point shows the quantity of good that would be be bought at a specific price)

Question 5

Law Of Demand

Answer 5

The higher the price, the lower the quantity demanded

Question 6

What cause movement along the curve

Answer 6

change in price

Question 7

Increases and decrease in demand cause…

Answer 7

Increase in demand at a given price causes quantity demanded to also increase

Decrease in demand at a given price cause QD to also decrease

Question 8

Increases and Decrease in the demand curve cause it to shift…

Answer 8

Increase: right
Decrease: left

Question 9

Factors that affect demand
(name them and their relationship)

Answer 9

Income- direct relationship
Substitutes- Direct
Complements- Indirect
Trends/fashion- Direct
Seasonal/weather- Direct
Advertising- Direct