Macroeconomics Flashcards
What is a commodity?
A commodity is a basic good and is interchangeable with other goods
State the definition of demand:
Consumers must be both willing and able to buy, and not that they want it but they can also afford it at their time
What is an individual demand?
The demand for a product by an individual consumer
Law of demand: when the price goes up _______________
the demand goes down
What does the law of demand state?
The law of demand states that there is an inverse relationship between quantity demanded and the price of a good and service
What is a market demand?
The demand of a product by all consumers/individuals in a market
What does an extension of demand mean? (and what does it look like)
The increase in quantity demanded due to a fall in price
https://commons.wikimedia.org/wiki/File:Demand_curve.png
