Demand and Demand Curve

Demand

quantity of a good/service consumers are willing and able to buy at a given price in a given time period

law of demand

inverse relationship between price and quantity assuming ceteris paribus

whats this

contraction of demand

whats this

extension of demand

why the downward slope

income effect and substitution effect

in what conditions and what causes a shift in the demand curve

if ceteris paribus is dropped, non price factors cause a shift

what are the non price factors acronym

PASIFIC

P

population

A

advertising

S

substitutes price (competition between brands)

I

Income for normal(cars, clothes)/inferior(fast food) goods

F

fashion and tastes

I

Interest rates (decrease leads to increase in demand)

C

Complement’s price (printer price increases, decreased demand of ink)