KT1: 1.2.1 Demand

Question 1

Complementary goods

Answer 1

These are bought in conjunction with each other, such as eggs and bacon or cars and petrol

Question 2

Inferior goods

Answer 2

goods for which sales fall when people are better off, but rise when consumers are struggling financially

Question 3

Luxury goods

Answer 3

ones for which sales rise rapidly when people are better off, but may fall rapidly in hard times

Question 4

Normal goods

Answer 4

ones for which sales move in line with changes in consumer incomes, e.g, sales at dry cleaning outlets

Question 5

Seasonal variation

Answer 5

change in the value of a variable (for example, sales) that is related to the seasons

Question 6

Subsitutes

Answer 6

products or services in competition with each other (e.g. Dairy Milk and Galaxy)