Demand (Week 2)

Question 1

Price down=

Answer 1

Expand of demand

Question 2

Price up=

Answer 2

Contraction of demand

Question 3

What does a shift on a demand curve show

Answer 3

An increase in demand (price stays constant)

Question 4

What are the 4 things that can cause a shift (increase/decrease) in demand

Answer 4

Taste, Related goods, Income, Population, Expectations

Question 5

What is effective demand

Answer 5

The ability and willingness to purchase a product/ service at a given price

Question 6

What is the law of demand

Answer 6

If price increases, demand decreases and vice verse (negative/inverse relationship)

Question 7

What is derived demand

Answer 7

Demand generated for a factor of production given a change in the demand for the good it produces