Shifts In Demand Flashcards
What happens to demandwhen price changes?
There will either be an extension or contraction in demand
What factors shift the demand curve inward and outward?
1)Advertising,
2) Population and age structure
3)Seasons
4Income
5) fashion and trends
6) substitutes and complimentary goods
What are normal goods
A good is a normal good if demand increases when income increases or demand decreases when income decreases. Eg. Iphones, petrol and designer clothes
What is an inferior good
A good is an inferior good if demand decreases when income increases or demand increases when income decreases
Eg. Clothes from charity shops, basic ice cream
What is a complementary good?
complementary goods are goods that compliments each other such as a tennis ball and tennis racket or an iphone and iphone apps.
What are the factors which affect demand also known as?
Conditions of demand
