Demand Flashcards
1
Q
What is demand?
A
The amount that consumers are willing and able to buy at a given price
2
Q
What does the demand curve show?
A
The relationship between the price and the amount consumers intend to buy at each price
- for most products, as the price rises, demand falls (increase in price leads to a contraction in demand)
- decrease in price leads to an extension in demand
3
Q
What are some of the factors that shift the demand curve?
A
- income
- advertising/publicity/trends
- price of substitute goods changing
- price of complementary goods changing
- changes in quality
- uncertainty over future prices
- weather conditions/seasonal goods
