Lesson 4 Flashcards
What is a demand
A demand is the various quantities of a good ans services that people are and able willing to buy at a specific period, ceteris paribus
What does ceterus paribus means
Other things being equal
What is the demand curve
A curve showing the relationship between thw price P and the quantity demanded Qd, ceteris paribus
What is the law of demand
Ceteris paribus, if price decreased its cheaper so the quantity demanded will increase
A few shifters that make demand move
- income
- population
- expectation
- taste
- price
What is the quantity demanded
It is a quantity that people will be willing and able to buy at a specific price
What is a normal good?
Good for which D increases as the consumer’s income increases and for which D falls as the consumer’s icome falls
What is an inferior good
Good for which D increases as the consumer’s income increases or vise versa
What is a substitute
Substitute is a good that can be used in place of another
What is a complement
Goods that are consumed together
