Lesson 2: The law of demand

Question 1

Definiton of demand

Answer 1

The ability and willingness of consumers to purchase goods/services

Question 2

The law of demand states that-

Answer 2

When the prices Decreases, the quantity demand increases
AND
When the prices increases, the quantity demand decreases

Question 3

What is the relationship in a demand curve

Answer 3

The demand curve shows the relationship between various possible prices for a product and quantity that consumers in the market would be willing and able to buy at each of these prices.

Question 4

The law of demand

Answer 4

As the prices increases, there is a contraction in the quantity demanded, causing a movement upwards along the demand line.

As the prices decrease, there is an expansion in the quantity demanded, causing a movement downwards along the demand line

Question 5

what is a movement along the curve due

Answer 5

to a change in a good or services price

Question 6

What is a shift in the entire demand curve due to

Answer 6

When one of the other factors effecting demand ( not price ) have changed