F3 - SEM1 - Demand, Quantity Demanded and the Law of Demand - 2A

Question 1

What is Demand?

2A Demand, Quantity Demanded and the Law of Demand

Answer 1

• consumer’s plan of purchase
• the quantities of good that a consumer is willing and able to buy at different prices

2A Demand, Quantity Demanded and the Law of Demand

Question 2

What is Quantity Demand?

2A Demand, Quantity Demanded and the Law of Demand

Answer 2

a quantity that a consumer is willing and able to buy at a particular price

2A Demand, Quantity Demanded and the Law of Demand

Question 3

What are the 2 methods a demand can be represented?

2A Demand, Quantity Demanded and the Law of Demand

Answer 3

• Demand schedule - table which shows the relationship between prices and quantities demanded of a good
• Demand curve - a curve which shows the relationships between prices and quantities demanded of a good

2A Demand, Quantity Demanded and the Law of Demand

Question 4

Explain the law of demand

2A Demand, Quantity Demanded and the Law of Demand

Answer 4

• When price rises, quantity demanded decreases
• When price falls, quantity demanded increase
• Other factors being constant

2A Demand, Quantity Demanded and the Law of Demand

Question 5

What is Individual demand?

2A Demand, Quantity Demanded and the Law of Demand

Answer 5

demand of a single consumer

2A Demand, Quantity Demanded and the Law of Demand

Question 6

What is Market demand?

2A Demand, Quantity Demanded and the Law of Demand

Answer 6

demand of all the consumers in the market

2A Demand, Quantity Demanded and the Law of Demand

Question 7

How to obtain the Market demand?

2A Demand, Quantity Demanded and the Law of Demand

Answer 7

Summation of all individual demand curves

2A Demand, Quantity Demanded and the Law of Demand