LS8 - Demand Flashcards
1
Q
Demand
A
The quantity of a good or service purchased at a given price over a given period of time
2
Q
Law of demand
A
As the price of a good increases, the quantity demanded decreases, vice versa
3
Q
Change in price …
A
Extension in demand if price decreases
Contraction in demand if price increases
4
Q
Shift in demand curve
A
Non price related change - incomes, advertising, change in consumer tastes
5
Q
Substitute goods
A
Two alternative products that can be used for the same purpose
6
Q
Complement goods
A
Products that are used together
