LS8 - Demand Flashcards
1
Q
Problem Of Demand
A
How to explain changes in the price of goods and services
2
Q
Solution Of Demand
A
Develop a model that brings together 2 economic agents.
3
Q
Demand
A
The quantity of a good/service purchased at a given price over a given time period.
4
Q
Law Of Demand
A
Ceteris paribus, as the price of a good increases, quantity demanded decreases and vice versa.
5
Q
Conditions Of Demand
A
Population Size Changes in prices of substitutes/goods Population Structure Incomes Advertising Change in taste/preference
6
Q
Substitute Goods
A
2 alternative products that could be used for the same purpose e.g. white or brown bread.
7
Q
Complement Goods
A
Products that are used together e.g. petrol & car.
8
Q
Population Structure
A
A change in age/social/cultural can impact demand.
