Flashcards
Demand
Cards in this deck (10)
- 1Define DemandDemand is the total quantity which will be purchased at any given price over a specific time period
- 2What is the Demand Function?D(x) = F[P(x), POG, Y, T, E]
- 3What does D(x), P(x) and POG in the Demand Function mean?D(x) = Demand for Good
P(x) = Price of Good
POG= Price of Other Goods - 4What do Y, T and E in the Demand Function mean?Y = Income
T = Tastes
E = Expenditure - 5Define the Law of DemandAs prices rise, demand falls
- 6What shape is the demand curve?Downward sloping from left to right
- 7State 3 exceptions to the Law of DemandGiffen Goods
Snob Items
Goods, the demand for which is influenced by expectations - 8State 3 things that cause a shift to the right of a demand curveRise in income
Rise in price of substitute
Fall in price of complement - 9State 2 things that cause a shift to the left of a demand curve.Expectation that prices will fall.
Change in tastes away from the good - 10Draw the demand curve
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- Description
- These flash cards test your knowledge of the major definitions of important concepts connected with demand in economics
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- jackexamtime
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