Demand Flashcards

1
Q

What is demand?

A

Demand is the desire backed with the ability to pay.

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2
Q

What is the definition of demand?

A

Demand is the quantity of a good or service that consumers are both willing and able to buy at any given price over a period of time.

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3
Q

What is willing and able?

A

Willing - You want to buy it.
Able - You have the means (money) to buy it.
You must do both for demand to occur.

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4
Q

What is a demand schedule?

A

A table that sets out the quantity of a good or service that a consumer is willing and able to buy at any given range of prices within a given time frame.

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5
Q

What is a demand curve?

A

A graph that sets out the quantity of a good or service that a consumer is willing and able to buy at any given range of prices within a given time frame.

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6
Q

What is the Law of Demand

A

States that an increase in the price of a good or service will result in a decrease in the quantity demanded, or vice versa, assuming Ceteris Paribus.

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7
Q

What is Ceteris Paribus?

A

The term that all factors (apart from one) remain the same.

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