Economics- Demand
- Created by: katier1234
- Created on: 03-11-19 11:50
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- Economics- Demand
- Law of demand
- The law of demand states that as the price of a good or service falls the quantity demanded increases. This is an inverse relationship
- Shifts of the demand curve
- Real disposable incomes- Incomes of individuals after inflation and taxation
- Tastes and preferences- Society's preferences change as they are influenced by the media, advertising and technology.
- Population- This will affect the market size for many products
- Prices of substitute products- Substitute products are in competitive demand and may be seen as a close alternatives to a particular good or service
- Prices of complementary products- Complementary products are those in joint demand so they are demanded together
- Demand is the quantity of a good or service that consumers are willing and able to buy at given prices in a particular time period
- Shape of the demand curve
- It is downward sloping
- Increase in demand- shift to the right
- Decrease in demand- shift to the left
- Meaning of competitive market
- A market is a situation in which buyer s and sellers come together to engage in trade
- A competitive market is where there are a large number of potential buyers and sellers, all individually powerless to influence the ruling of the market price
- Key words linked to demand
- Taxation- a charged placed by the government on various forms of economic activity
- Substitute good that may be consumed as an alternative to another good
- Complement- a good that tends to be consumed with another good
- Equilibrium price- the price at which the planned demand of consumers equals the planned supply of the firms
- Law of demand
- Key words linked to demand
- Taxation- a charged placed by the government on various forms of economic activity
- Substitute good that may be consumed as an alternative to another good
- Complement- a good that tends to be consumed with another good
- Equilibrium price- the price at which the planned demand of consumers equals the planned supply of the firms
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