L8 - Demand

Question 1

What is demand?

Answer 1

Quantity of a good or service purchased at a given price mover a certain period of time

Question 2

What is quantity demanded measured in?

Answer 2

Units

Question 3

What is the law of demand (assuming ceteris paribus)?

Answer 3

Higher price of a good = less quantity demanded
Lower price of a good = more quantity demanded

Question 4

What is a decrease in price known as on a graph?

Answer 4

Extension/expansion in demand

Question 5

What is an increase in price known as on a graph?

Answer 5

Contraction in demand

Question 6

What are substitute goods?

Answer 6

2 alternative products that can be used for the same purpose

Question 7

What are compliment goods?

Answer 7

Products that are used together

Question 8

What 4 factors affect demand?

Answer 8

Change in age structure of population

Changes in income - higher income = higher demand

Successful advertising

Changes in consumer taste/preferences