A.p 2nd Quarterly Exam

• Demand the wants and need of humans
• Demand is an economic principle reffering to desire's to purchase goods and services and willingness to pay a price for a specific good or services
• Concept of demand- the soul of economics
• In economics ability and willingness always come together
• Market demand is the total quantity demanded across all the consumers in a market for a given good
• Market Demand the total quantity demanded across all the consumers in a Market for a given good
• Market demand - how willingness consumers are to spend a certain price on a particular good or service
• Aggregate Demand - total demand for all goods and services in an economy
• Law of Demand - the law states that other factor being constant
• Ceteris Paribus - All things being equal
• General Principle- Inversely proportional
• Substitution effect - refers to the chang in consumption
• Substitution effect - people buy less of a goods as its price goes up
• Preference profile - the concept of market segmentation
• Market Segmentation - segmented based on products preference
• Purchasing power - consumer loses purchasing power when prices increase. They gain purchasing power when prices decrease