lesson 7- demand Flashcards
1
Q
what is derived demand?
A
a good that is demanded in order to produce another
2
Q
what are substitutes?
A
goods in competitive demand and act as a replacement for another product
3
Q
what is composite demand?
A
a good demanded for multiple uses
4
Q
what is an inferior good?
A
when income rises, demand for these products falls
-e.g. fast food/primark
5
Q
what is a normal good?
A
when income rises,demand for these products rise
6
Q
what type of relationship is there between price and demand?
A
inverse
-price rises,demand falls as less consumers are able and willing to pay
7
Q
what is ceteris paribus?
A
all factors are held constant except one
