Demand
- Created by: 8skrevision
- Created on: 07-01-18 15:23
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- Demand
- Effective demand- When a desire to buy a product is backed up by an ability to pay for it
- Derived demand- demand for a factor of production used to produce another good or service
- Law of demand-
- If price falls than there will be an expansion of demand- opposite= contraction
- Income effect- if price falls= more demand as can afford more
- substitution effect- if price falls product is relatively cheaper than alternative time- some customers switch
- Factors of Demand
- Change in price of substitute good/services in competitive demand
- Change in price of complement goods
- change in real income
- Effects of advertising/marketing
- interest rates
- Seasonal factos
- Social factors
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