Unit 4 - Demand Flashcards
1
Q
Def: demand
A
Quantity of a product bought at a given price at a given period of time
2
Q
Def: Demand curve
A
A line going down drawn on a graph y axis price x axis quantity demanded
To show how much of a good will be purchased at a given price
3
Q
Non financial reasons for change in demand (10)
A
- price of substitute
- price of complementary good
- consumer income
- advertising
- demographics
- external shocks
- seasonality
- trends and fashion
4
Q
Def: complementary goods
A
Goods that are purchased together because they are consumed together
Eg. coffee pods and machine
5
Q
Def: substitute goods
A
Goods that can be bought as alternative but perform the same function
Eg Coca-Cola Pepsi
6
Q
Def: Inferior goods
A
Goods that when income rises demand falls vise verse
Eg. Rice, microwave meals
7
Q
Def: normal goods
A
Goods that when income rises a demand rises vise verse
