LS 8- Demand Flashcards
1
Q
What does the law of demand state?
A
As price increases
Quantity decreases.
2
Q
What does a decrease in price result in?
A
An extension or expansion shown by a movement along a PPF curve
3
Q
What is demand?
A
The quantity of a good or service purchased at a given price over a time period
4
Q
What are substitute goods?
A
Alternative products that can be used for the same purpose
5
Q
What are complementary goods?
A
Products that are used together
6
Q
What effects demand?
A
- Change in age structure
- Change in income
- Advertising
- Tastes/Preferences
