Demand Flashcards
1
Q
studies economy through behavior of individuals
A
Microeconomics
2
Q
Microeconomics central idea
A
Market
3
Q
Demand ? to buy a good or service at a given price and time
A
willingness and ability
4
Q
? + ?
A
• desire + purchasing power
5
Q
Demand is ? Proportional
A
Inversely
6
Q
The factor/s of demand
A
Price is the only
7
Q
change in price affects purchasing power
A
•income effect
8
Q
change in price of substitute goods affects demand ot
Other goods (brands)
A
substitution effect -
9
Q
consume until utility=cost
A
law of diminishing marginal utitlity-
10
Q
mathematical representation of demand
A
Demand function:
