Topic 2.1 The Determinants Of The Demand For Good And Services Flashcards
1
Q
What is demand?
A
It’s the quantity of a good or service that consumers are willing to buy at a given price.
2
Q
What Factors affect the shift of the demand curve?
A
Population,income,related goods,advertising,tastes,expectations,seasons
3
Q
Mnemonic used to remember the factors that affect the shift of the demand curve?
A
PIRATES
4
Q
What does population have to do with demand?
A
The larger the population, the higher the demand
5
Q
What does income have to with demand?
A
If consumers have a more disposable income, they are able to afford more goods.
6
Q
What does tastes have to do with demand?
A
The demand curve will shift if consumers tastes change. For example they may go from physical books to e books
