- Created by: Ritika
- Created on: 07-03-15 10:55
Conditions of demand
- price of substitute goods
- price of complementary goods
- personal income
- tastes & preferences
- population size
Normal and inferior goods
Inferior goods: a good for which demand decreases as income rises
Normal good: a good for which demand increases as income rises
Composite demand: a good that is demanded for two uses
Derived demand: the demand for a good comes from the demand from another good.
A movement along the demand curve happens when the good's price changes.
A change in one of the conditions of demand shifts the demand curve to a new position