Key terms pt2

Question 1

Demand

Answer 1

A consumers desire to purchase goods and services and willingness to pay a specific price 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 cure

Answer 3

Shows a single good/service

Question 4

Market demand curve

Answer 4

The sum of individual demand curves

Question 5

Law of demand

Answer 5

The higher the price, the lower the quantity demanded

Question 6

Demand curve

Answer 6

A downwards sloping graph that shows the relationship between price and quantity demanded.

Question 7

PED

Answer 7

Price elasticity of demand is the responsiveness of demand to a change of price(the way consumers react). A numerical value with n o units and is usually negative.

Question 8

Elastic good

Answer 8

Price and revenue have an indirect relationship

Question 9

Inelastic good

Answer 9

Price and revenue have a direct relationship

Question 10

Total revenue

Answer 10

Price per unit x quantity sold