DEMAND Flashcards
1
Q
what does a demand curve show?
A
the relationship between price and quantity demanded
1
Q
what are factors that may cause a shift in the demand curve?
A
- changes in real incomes
- advertising and branding
- changes tastes and fashions
- changes in the price of substitute and complementary goods
- changes in the population demographics
2
Q
how is a change in price shown on a demand curve?
A
by a movement along the demand curve
3
Q
what is a normal good?
A
one where if price rises demand will fall
a negative correlation
4
Q
what does ceteris paribus mean?
A
that all other factors remain the same
allows us to identify the impact if changes to one factor
5
Q
what is a veblen good?
A
one where the demand increces as the price goes up
usually luxury status symbol items
6
Q
what is an inferior good?
A
one where its demand decreases as incomes increase
e.g. own brands
7
Q
A
