2.2 Demand

Question 1

Learning outcomes

Answer 1

_What is Demand?
_Movements on a Demand curve v Movements oF.
_Identify the determinants of demand.

Question 2

Demand schedule: Why dies demand slope down?

Answer 2

• Diminishing marginal utility
• Income effect
• Substitution effect

Question 3

Demand

Answer 3

Is the quantity of a good or service that will be purchased at a given price over a given period of time.

Question 4

Law of Demand

Answer 4

• As the prices of the good increases -> quantity demand falls.
• As price falls -> quantity demand increases

Question 5

Market demand

Answer 5

Market demand is the sum of all individual demands for that good.

Question 6

Changes in the quantity of demand.(Conditions of demand)

Answer 6

1. Income-( Normal vs Inferior)
2. Price of other goods.-( Substitutes vs complements)
3. Change in population
4. Change in tastes/preferences( Can be influences by Advertising)
5. Change in legislation.

Question 7

4 types of marks in Economics

Answer 7

1. Knowledge- basic content recall
2. Application- using data references or details to connect your answer to the context.
3. Analysis- Explain why something is happens and making casual connections
4. Evaluation- demonstrating and understanding of other possibilities or varying degrees of an outcome.

Question 8

Law of diminishing marginal utility

Answer 8

Diminish- Getting smaller
Marginal- The next unit
Utility- How much value you gain from consuming that good.

Question 9

Consumer surplus

Answer 9

• The difference between what buyers are prepared to pay and what they actually pay.
• On a graph, this is the area below the demand line and above the price line.