Demand for goods and services

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  • 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
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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.

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Demand curve

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

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