Demand

Question 1

What is Demand?

Answer 1

It is the willingness and ability of a person to buy a certain product.

Question 2

What is the law of Demand?

Answer 2

The law of demand states that there is an inverse relationship between QUANTITY DEMANDED AND PRICE.

Question 3

What causes a change in Quantity Demanded?

Answer 3

The price of a good?

Question 4

What causes a shift in demand curve?

Answer 4

1) Incomes ( demand may decrease due to increase in income in case of inferior good)
2) Taxes on goods
3) Interest rates
4) Ease of loans
5) Successful or failed advertisements
6) decrease in demand of substitute good ( price increase of substitute good)
7) Increase in demand of compliment good ( price decrease of compliment good)
8) trends and fashions ( fidget spinners 2017)
9) Expected change in future price of a good
(Expectations by consumers of future changes in prices would affect demand. For example, if
consumers expect future increases in the price of a commodity, then they will buy more of
it now in order to avoid paying a higher price for it later.)

Question 5

How to achieve market demand?

Answer 5

The horizontal summations of all the demands of the different curves.