Demand Flashcards
1
Q
Substitute goods
A
When A’s price increases, the quantity demanded decreases. And B’s demand increases.
2
Q
Complementary goods
A
When A’s price increases, the quantity demanded decreases. So the demand for B decreases.
3
Q
Derived demand
A
Steel is the derived demand of house. When the demand for house increases, the demand for steel also increases, so the ep and eq increases.
4
Q
Preference
A
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5
Q
Price expectation
A
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6
Q
Superior goods
A
Income increases, demand for superior goods increases. Vise versa
7
Q
Inferior goods
A
Income increases, demand for inferior goods decreases. Vise versa
