Topic 3 - Determinats of Demand Flashcards
What is a market
Where buyers and sellers meet and transact goods and services for money
What are competiive markets
Where the are a large number of buyers and sellers who accept the equilibrium price
What is equilibrium price
Where the price consumers are willing to pay is equal to the price firms will sell/supply at
What is desire demand
Demand on products where we dont have the money to purchase it
What is effective demand
When we have the money to purchase products demanded
What is effective demand
The desire for a good or service backed by the ability to pay
Other than price what influences demands
Incomes
Advertising
Price of substitues
Price of complementary products
Fashion trends
Quality changes
Weather
Law
Tax
Interest Rates
What is composite demand
A good or service that is demanded for more than one reason
What is derived demand
Demand that comes from the demand of another product
