Lesson 3- The Demand Curve Flashcards
Define market
A market is defined is any arrangement that enable buyers and sellers to communicate and exchange goods and services.
Define Demand
Refers to the quantity that consumers are willing and able to buy at a given price over a period of time.
Define Demand Schedule
A demand schedule demonstrates various quantities demanded at various price.
What is the law of demand?
There is a inverse relationship between price and quantity demanded.
What happens to Qd when price increases.
Qd will fall
What happens to Qd when price falls
Qd will increase.
Define Demand Curve
A demand curve is a diagram that demonstrates a demand schedule
What does it mean when there is a contraction in demand?
When the price increases there will be a fall in quantity demanded.
What does it mean when there is a extension in demand?
When the price reduces there will be an increase in quantity demanded.
When will there be a movement along the curve?
When the price increases or when the price decreases.
