Determinants Of Demand Flashcards Preview

Year 12Microeconomics > Determinants Of Demand > Flashcards

Flashcards in Determinants Of Demand Deck (7)
Loading flashcards...
1
Q

4 determinants of demand??

A

Change in RDI
Change in price of substitutes
Change in price of complements
Change in fashions and trends

2
Q

Which way does demand curve shift if there’s a positive change in fashion towards a product??

A

Right

3
Q

Which was does demand curve shift if substitutes fall in price??

A

Left

4
Q

Which way does demand shift if complements increase in price??

A

Left

5
Q

How does RDI change in a boom and recession and how does it affect demand??

A

RDI falls in a recession and so does demand

Opposite happens in a recession

6
Q

What factors can affect tastes and fashions for a product??

A

Media, health issues, weather, culture

7
Q

How does RDI change in a boom and recession and how does it affect demand??

A

RDI increases in a recession and so does demand

Opposite happens in a recession