Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Demand
Economics
| Question | Answer |
|---|---|
| Demand | The amount consumers desire to purchase at various prices at any given time |
| Effective Demand | Consumers must be willing to buy AND be capable of paying the price set by the supplier |
| Law of Demand | If Price rises – Quantity demanded falls and vice versa |
| Individual Demand Curve | A graph showing the different quantities of a good that an individual consumer is prepared to buy at each price |
| Market Demand Schedule | Lists the different quantities of a good that all consumers in the market are prepared to buy at each price. It is derived by adding together all the individual demand schedules for the good |
| Factors affecting the demand for a good | Dx = f ( Px, Pog, Y, T, E, G, U) |
| It causes a movement along a demand curve | Price of the good itself |
| It shifts the demand curve inwards or outwards | Price of other goods , tastes, expectations of future prices, govt regulations, unplanned factors and Income. |
| The purchasing power of a person's money | Real Income |
| A good with a positive income effect Y increases , D increases | Normal Good |
| A good with negative income effect Y increases , D decreases | Inferior good |
| A rise in price of this good will cause an increase in qty demanded | Snob good |
| Goods that are in joint demand , the use of one involves the use of the other | Complementary Goods |
| Good that satisfy the same needs , they are similar | Substitute Goods |
| A table showing the different quantities of a good a consumer is prepared to buy at each price | Individual demand schedule |
| A good for which quantity rises if the price rises and vice-versa | Giffen good |
| If the price of a good falls the real income of the consumer is increased, allowing more of the good to be purchased | Income effect |
| If the price of a good falls , the consumer is likely to buy more of it because it is now cheaper relative to other goods | Substitution effect |
| The extra satisfaction a consumer enjoys from consuming an extra unit of a good | Marginal Utility |
| Payments to individuals where No FOP is supplied in return | Transfer Payments |
| Consumers spend their income where the marginal utility to price is the same for all goods | Law of Equi-Marginal returns / Equi- Marginal Principle |
| Demand that occurs when the demand for two or more products are used together. | Joint Demand |
| When a particular type of goods is used to produce more than one type of product | Composite demand |
| The difference between the highest price a consumer is willing to pay for a good or service and the amount that they actually do pay | Consumer Surplus |
Created by:
Calasanctius
Popular Economics sets