law of demand

Question 1

law of demand

Answer 1

suggests when prices increase, quantity demanded decreases; when prices decrease, quantity demanded increases

Question 2

demand curve

Answer 2

is a graph that shows the inverse relationship between price and quantity demanded

Question 3

demand schedule

Answer 3

shows the quantity demanded at different prices and is used to create a demand curve

Question 4

quantity demanded

Answer 4

is the amount of a good that buyers are willing and able to buy at a give price

Question 5

price

Answer 5

is the amount consumers pay when buying a good or service

Question 6

change in demand

Answer 6

is a change that increases or decreases the quantity demanded at every price

Question 7

determinants of demand

Answer 7

are factors that increase or decrease demand: income, expectations, prices of related goods (complements/substitutes), population, tastes/preferences

Question 8

income

Answer 8

will affect demand as high income will result in people purchasing more goods, increasing demand while less income will result in fewer purchases, decreasing demand.

Question 9

complements

Answer 9

are two goods for which an increase in the price of one leads to a decrease in the demand for the other

Question 10

substitutes

Answer 10

are two goods for which an increase in the price of one leads to an increase in the demand for the other.

Question 11

tastes/preferences

Answer 11

are either positive or negative trends that can change the demand for goods based on their popularity

Question 12

population

Answer 12

can affect demand as higher populations tend to increase demand, while lower populations decrease demand.