Demand Flashcards
What is the law of demand
If prices are high demand goes down, if price goes down demand will increase
What are alternative goods
Businesses within the same market that offer the same goods and service
What are substitute goods
Businesses that compete in different markets-meet needs of consumers
What is a complimentary good
A good that is bought alongside another
What is a normal good
As income increase demand for goods also increase as consumers have more money to spend
What is a luxury good
As income increases demand for the these products will increase by a significant amount
What is an inferior good
As income increases demand for goods fall as people switch to more expensive alternatives
What are demographics
Look at the different characteristics and trends existing within a population
What is an external shock
Events outside of the business control and often unexpected
What is seasonality
Demand for goods and services isn’t the market that can fluctuate during the year
