Ch.7- Demand Flashcards
Demand
The willingness and ability to buy a product
Market demand
Total demand for a product
Aggregation
The addition of individual components to arrive at a total amount
Extension in demand
A rise in the quantity demanded caused by a fall in the price of the product itself
Contraction in demand
A fall in the quantity demanded caused by a rise in the price of the product itself
Changes in demand
Shifts in the demand curve
Increase in demand
A rise in the demand at any given price, causing the demand curve to shit to the right
Decrease in demand
A fall in demand at any given price, causing the demand curve to shift to the left
Normal goods
A product whose demand increases when income increases and decreases when income falls
Inferior goods
A product whose demand decreases when income increases and increases when income falls
Substitutes
A product that can be used in a place of another
Complement
A product that is used together with another product
Ageing population
An increase in the average age of the population
Birth rate
The number of live births per thousand of the population in a year
