The Demand Curve Flashcards
what is demand
the amount of goods or services that will be bought over a period of time at a specific price
what is effective demand
the amount of goods or services that would be bought at any given price (DOES NOT MEAN IF THE CONSUMER HAD ENDLESS MONEY)
what is a demand schedule
the quantity and the price in a table, just the graph without the demand curve
what is a demand curve
a line on a graph which shows the quantity demanded at any given price
what is the charecteristics of a demand curve and why
it solves downwards from left to right because the relationship between demand and price is inversely proportional, if price goes up demand decreases
why are most demand curves shown as straight lines
to simplify the data and make it easier to predict and analyse
what is a shift in the demand curve
when the entire demand line moves left of right, ie where there is a change in any factor except price
