S Demand Flashcards
1
Q
What is the law of demand?
A
Price and dmeand has inverse relationship. When price decreases demand increases and vice versa.
2
Q
Effect of change of price on model demanded line
A
a change in price results in a movement along the demand curve, where a price decrease increases the quantity demanded, and a price increase decreases the quantity demanded, Effect of change on pri
3
Q
Non price factors affecting demand
A
income. effect on normal and inferior goods
population
tastes and preferences
prices of substitutes and complements
expected future prices
4
Q
A
