Demand

Question	Answer
Define Demand	Demand is the total quantity which will be purchased at any given price over a specific time period
What is the Demand Function?	D(x) = F[P(x), POG, Y, T, E]
What 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
What do Y, T and E in the Demand Function mean?	Y = Income T = Tastes E = Expenditure
Define the Law of Demand	As prices rise, demand falls
What shape is the demand curve?	Downward sloping from left to right
State 3 exceptions to the Law of Demand	Giffen Goods Snob Items Goods, the demand for which is influenced by expectations
State 3 things that cause a shift to the right of a demand curve	Rise in income Rise in price of substitute Fall in price of complement
State 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
Draw the demand curve	Image: demand_curve (image/png)

Resource summary

	Created by jackexamtime over 10 years ago