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What is demand in economics?
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices.
What are determinants of demand?
Determinants of demand are factors that influence the willingness and ability of consumers to buy goods and services.
Name a key determinant of demand.
Consumer income.
How does consumer income affect demand?
As consumer income increases, the demand for normal goods typically increases, while demand for inferior goods may decrease.
What is consumer taste and preferences?
Consumer taste and preferences refer to the subjective taste of consumers, affecting their demand for different goods.
How do expectations impact demand?
If consumers expect prices to rise in the future, they may increase their current demand.
What role do substitute goods play in demand?
If the price of a substitute good rises, demand for the other good may increase.
What is the impact of complementary goods on demand?
If the price of a complementary good decreases, the demand for the related good may increase.
What is market size in terms of demand?
Market size refers to the number of potential buyers in a market, influencing overall demand.
How does the price of a good affect its own demand?
Typically, as the price of a good decreases, the quantity demanded increases, and vice versa, following the law of demand.
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