1.2.2 Demand Flashcards
(4 cards)
1
Q
Demand
A
Quantity of g+s a consumer is willing and able to buy at a given price and time period
2
Q
Conditions of demand
A
-Income
-Population/demographics
-Tastes/preferances
-Changing trends/adverts
-Related goods
-Future expectations
3
Q
Dimining marginal utility
A
-As a consumer consumes more units of a g+s, the additional satisfaction gained from each additional unit decreases
-The first unit is valued the most
4
Q
Influence of DMU on the demand curve
A
-Downward slope
-As price decreases consumers are willing to buy more because the marginal utility of each additional unit exceeds the price
e.g. 1st scoop of icecream great
-5th scoop satisfaction is smaller
