Demand Flashcards
(12 cards)
What is a market?
Anywhere buyers and sellers can exchange goods or services
What is the price level and quantity sold decided by?
The level of demand and supply
What is demand?
The quantity of a good/service that consumers are willing and able to buy
What does a shift right in demand curve show?
Increased demand
What does a shift left in demand curve show?
Decreased demand
What can cause a shift in the demand curve?
Changes in tastes and fashion
Changes to income
Changes in other markets
What are normal goods?
People will demand more if real income increases
Food, clothing, and household appliances.
What are inferior goods?
People demand less if real income increases
generic brands, instant noodles, or public transportation
What are substitute goods?
Goods which are alternatives to each other
What are complementary goods?
Goods that are used together
Joint demand
What is derived demand?
Demand for a good or factor of production used in making another good or service
What is composite demand?
Products used in more than one production
