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Description
Flashcards by jackexamtime, updated more than 1 year ago
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Created by jackexamtime
almost 11 years ago
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| Question | Answer |
| Define Demand | Demand is the total quantity which will be purchased at any given price over a specific time period |
| What is the Demand Function? | D(x) = F[P(x), POG, Y, T, E] |
| What does D(x), P(x) and POG in the Demand Function mean? | D(x) = Demand for Good P(x) = Price of Good POG= Price of Other Goods |
| What do Y, T and E in the Demand Function mean? | Y = Income T = Tastes E = Expenditure |
| Define the Law of Demand | As prices rise, demand falls |
| What shape is the demand curve? | Downward sloping from left to right |
| State 3 exceptions to the Law of Demand | Giffen Goods Snob Items Goods, the demand for which is influenced by expectations |
| State 3 things that cause a shift to the right of a demand curve | Rise in income Rise in price of substitute Fall in price of complement |
| State 2 things that cause a shift to the left of a demand curve. | Expectation that prices will fall. Change in tastes away from the good |
| Draw the demand curve |
Image:
demand_curve (image/png)
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