Demand
- Created by: Former Member
- Created on: 04-05-15 11:40
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- Demand.
- Definition: the quantity of a good or service that consumers are willing and able to buy at a given price, at a given time.
- Demand Curve
- Shows the relationship between price and quantity demanded.
- Decrease in demand causes a shift either left or right.
- Lower prices =
- Consumers more able and willing to pay ... demand increases.
- Determinants of Demand.
- Tastes and Fashion.
- If something is popular it shifts to the right etc.
- Income
- The amount that people can afford to purchase with their income affects demand.
- Normal Goods
- demand more of if income increase.
- Inferior Goods.
- demand less if real income increases.
- Tastes and Fashion.
- Interrelated Markets.
- Substitute Goods
- Increase in the price of one good will increase the demand of the other.
- Complementary Goods.
- Joint demand - increase in demand for one will increase demand for another.
- Derived Demand
- Demand for product increases the demand for one of the factors production.
- Substitute Goods
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