chapter 7- demand

Question 1

definition of demand

Answer 1

refers to the ability and willingness of customers to pay a given price to buy a good or service. the higher the price of a product, the lower its demand tends to be.

Question 2

definition of substitutes

Answer 2

goods or services that can be used instead of each other

Question 3

definition of complements

Answer 3

products that are jointly demanded.

eg. tennis balls and tennis racquets

Question 4

definition of market demand

Answer 4

is the sum of all individual demand for a particular product

Question 5

how is a decrease in demand represented

Answer 5

shift of demand curve to the left. resulting in less quantity demanded at all price levels.

Question 6

how is an increase in demand represented

Answer 6

shift of demand curve to the right.

demand for that product is higher at all price levels.

Question 7

what causes a demand shift

Answer 7

change in price or change in the other non price factors