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18 Terms
1
demand
is the desire or want for something
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2
demand
the amount the buyers are willing to purchase at a given price and over a given period of time
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3
demand
is the desire to own anything, the ability to pay for it, and the willingness to pay.
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4
quantity demand
is the amount of a product people are willing to buy at a certain price
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5
price
is the amount of money that has to be paid to acquire a given product.
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6
downward sloping
The demand curve is usually \_______, since consumers will want to buy more as price decreases
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7
law of demand
It has an inverse relationship of the Price and its Quantity Demand.
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8
law of demand
it states that When Price increases, Quantity demand decreases and vice versa
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9
income
A buyer's income determines his/her purchasing capacity
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10
tastes, habits, and preferences
Demand for many goods depend on the person's tastes, habits and preferences. Demand for several products like ice-cream, chocolates, beverages and so on depends on individual's tastes
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11
relative prices of other goods
How much the consumer would like to buy of a given commodity, however, also depends on the relative prices of other related goods such as substitute or complementary goods to a commodity
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12
substitute products
percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B
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13
complementary products
products whose demand curves are positively related, such that they rise or fall together; a percentage increase in demand for one result in a percentage increase in demand for the other
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14
consumer's expectations
When he expects its prices to fall in future, he will tend to buy less at the present prevailing low price
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15
Consumers expectations
if he expects its price to rise in the future, he will tend to buy more at present
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16
Advertising Expense
In modern times, the preferences of a consumer can be altered by advertisement and sales propaganda, albeit to a certain extent only
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17
demand function
a mathematical function describing the relationship between a variable, like the demand of quantity, and various factors determining the demand.
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18
demand function
the purpose of this function is to analyze the behavior of consumers in a market and to help firms make pricing decisions
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