Studied by 2 peopleDemand
The willingness and ability of sonsumers to buy a range of quanities at every possible price
The Law of Demand
The quantity demanded of a good or service is inversely related to its price, ceteris paribus
Income Effect
As price increases, people are willing to buy less because it takes a greater portion of their income
Purchasing Power
The quantity of goods and services that a consumer can buy with an amount of income
Determinants of Consumer Demand
Factors that move the entire demand curve for a good or service
Normal Goods
Goods that people will buy more of when their income increases
Inferior Goods
Good people will buy less of when their income increases
The Law of Supply
The quantity cupplied of a good or service is directly related to its price
Elasticity
How responsive supply or demand is to a change in price or income
Note
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