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Economics
Theme 1
1.2.2 Demand
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Created by
Marjan Nezamyar
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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