Demand

Question 1

what is demand

Answer 1

the amount consumers are willing and able to buy at a given price

Question 2

what do demand curves show

Answer 2

-as price falls the quantity demanded will increase

Question 3

factors that affect demand 6

Answer 3

1. price of substitutes or complements
2. income levels
3. tastes/trends
4. external shocks
5. advertising
6. demographics

Question 4

price of substitute products

Answer 4

• if a supermarket own-brand version of a branded item lowers it price it will affect the demand for the branded item

Question 5

price of complementary products

Answer 5

if the ink price goes up the demand for printers will go down, less will be bought

Question 6

changes in consumer incomes (normal goods)

Answer 6

if salaries goes up then the demand for eating out and holidays would potentially increase

Question 7

fashion, tastes and preferences

Answer 7

this will increase sales in certain items like cars, clothing, types of food

Question 8

advertising and branding

Answer 8

• if there is a successful advertising campaign the demand for some items might go up

Question 9

demographics

Answer 9

-the age of a pop or its make up ( ratio of women to men) will influence the demand for certain goods

Question 10

external shcoks

Answer 10

covid made a demand for mask and sanitary items

Question 11

seasonality

Answer 11

this is the demand for goods at different times of the year
- christmas goods

Question 12

demand curve goes up

Answer 12

if there is an increase in demand