3A Demand Analysis

These flashcards cover the fundamental vocabulary and concepts of Demand Analysis, including definitions, schedules, and the relationship between price and quantity.

Utility

The basis of demand that may generate a desire or a need for a particular commodity, but cannot generate demand on its own.

Demand (Economics)

A desire which is backed by willingness and ability to pay.

Desire

An urge to have something, which in ordinary language is called demand but lacks economic backing.

Economic Demand Equation

$$\text{Demand} = \text{Desire} + \text{Willingness to purchase} + \text{Ability to pay}$$

Benham's Definition of Demand

The demand for anything at a given price is the amount of it, which will be bought per unit of time at that price.

Demand Features

A relative concept that must be expressed with reference to both time and price.

Demand Schedule

A tabular representation of the functional relationship between price and quantity demanded.

Individual Demand

The quantity of a commodity demanded by a consumer at a given price during a given period of time.

Individual Demand Schedule

A tabular representation showing different quantities of commodities that an individual consumer is prepared to buy at various prices over a given period of time.

Price and Quantity Relationship

An inverse relationship where less quantity is demanded at rising prices and more quantity is demanded at falling prices.

Individual Demand Curve

A graphical representation of the individual demand schedule.