Intro To Demand

Question 1

Quantity demand

Answer 1

when price changes, quantity demand moves along the demand curve

Example: If the price of a product increases, the quantity demanded decreases.

Question 2

Demand

Answer 2

the quantity of a good consumers are willing and able to buy at any given time over a period of time

Question 3

Determinate of demand

Answer 3

PASIFIC

P - Preferences, A - Availability of substitutes, S - Size of the market, I - Income, F - Future expectations, I - Individual tastes, C - Complementary goods

Question 4

Allocative efficiency

Answer 4

This occurs when there is an optimal distribution of goods and services, taking into account consumer’s preferences.

Question 5

Producive efficiency

Answer 5

a situation where all the resources in society are being used to produce as much as possible

Question 6

Pareto efficiency

Answer 6

when resources are so allocated that it is not possible to make someone better off without making someone else worse off

Question 7

Ceteris paribus

Answer 7

all other things being equal

Question 8

Division of labour

Answer 8

enables workers to focus on specific tasks

Question 9

Law of demand

Answer 9

ceteris paribus, as price increases, quantity demand decreases. As price decreases quantity demand increases. Therefore, the relationship is inversely proportional between the price and demand of a good.

Question 10

Market

Answer 10

any situation that brings buyers and sellers together to trade goods and services

Question 11

Joint demand

Answer 11

goods which are interdependent/demanded together

Question 12

Competitive demand

Answer 12

demand for goods that are in competition with each other

Question 13

Composite demand

Answer 13

demand for a good that has multiple uses