2.3 Demand

Question 1

What is demand?

Answer 1

the quantity buyers are willing to buy at a given price in a given time.

Question 2

What is effective demand?

Answer 2

for demand to be effective a consumer must be both willing and able to buy the good or service.

Question 3

What is a contraction in demand?

Answer 3

the fall in the quantity demanded due to a rise in price.

Question 4

What is an extension of demand?

Answer 4

the increase in quantity demanded due to a fall in price.