Economics: Market Demand-Questions and Answers Graded A+

Economics: Market Demand-Questions and Answers Graded A+ Demand - ANSWER-The relationship between the price and quantity demanded for a good or service when other variables are held constant Quantity Demanded - ANSWER-base on the assumption that other variables remain constant or unchanged accept price Law of demand - ANSWER-states there is an inverse relationship between the price of a good or service and the quantity buyers purchase Demand schedule - ANSWER-is a table that lists the quantity of a good or service consumers purchase at various possible prices Demand Curve - ANSWER-is formed by the line connecting points that represent possible combinations of price and quantity purchased by consumers. It is an inverse relationship Market Demand Curve - ANSWER-Individual Demand curve and Market Demand curve Individual Demand Curve - ANSWER-The demand of a single consumer Market Demand Curve - ANSWER-The sum of all the individual demand curves in a market Shifts in the Demand Curve - ANSWER-Number of buyers, Taste, Income, Expectations/Rumors, Price of related goods Number of buyers - ANSWER-Includes seasons Taste - ANSWER-Men's ties, Off-shoulder shirts Income - ANSWER-Recessions (demand Lower) Prosperity (demand Higher) Expectations/Rumors - ANSWER-Snowstorms: going to store to buy things in preparation Price of related goods - ANSWER-Substitutes and Compliments Demand Shift Factors (Substitutes) - ANSWER-Are goods that expert for consumer purchases. There is direct relationship between a price change for one good a the demand for its "competitors" good. Blueberries go up in price and you don't want to buy it what do you do to replace it? Frozen blueberries Demand Shift Factors (Complements) - ANSWER-Are good that consumers purchase together with another good. Things you by with a cell phone: phone case, charger Income (Normal Goods) - ANSWER-Any good that has a direct relationship between changes in income and its demand curve. A rise in income results in increased purchases of normal goods. examples: Steak New cars Brand Name products DVD