1
Q
Explain demand. What does effective demand mean? [2]
A
- The human wish to obtain goods or services
- Effective demand means willingness to buy along with ability to pay
2
Q
What does customer sovereignty suggest?
A
- Suggests that consumers control resource use by deciding what to buy
3
Q
Spending choice has a BLANK because…. [2]
A
- OPPORTUNITY COST
- Incomes are limited
4
Q
What factors determine demand? [4]
A
- Attractiveness of option/taste
- Advertising and branding
- Alternatives/substitutes
- How many can access it
5
Q
What does the demand curve show? [2]
A
- Shows the relationship between price and demand
- Assumes no other changes
6
Q
Explain contraction of demand within the demand curve
A
- A rise in price causes movement up and left along the line
7
Q
Explain extension of demand within the demand curve
A
- A fall in prices causes movement down and right along the line
8
Q
What will cause a shift to a new demand curve?
A
A change in any other relevant factor
9
Q
What will cause the curve to shift to the right (sudden popularity)?
A
A change which increases demand
10
Q
What will move the demand curve to the left?
A
A change which decreases demand
