1.2.2 Demand

Cards (3)

  • Demand:

    The quantity of a good or service that consumers are willing to buy at a given price in a given time period.
  • Law of diminishing marginal utility:

    The additional satisfaction gained by a consumer declines as the number of goods consumed increases.
    (demand curve is downward sloping due to the law of diminishing marginal utility).
  • Determinants of demand (shift demand curve):
    P-Population
    A-Advertising
    S-Substitutes (price of)
    I-Interest rates
    F-Fashion and trends
    I-Incomes of consumers
    C-Complements (price of)
    S-Seasonality