Demand (Junior Cert Business Studies): Flashcards
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Practise the cards
15 cards from this deck
Definition of demand
Definition of demand
Quantity consumers willing & able to buy at different prices in a time period
Law of demand
Law of demand
Inverse relationship between price and quantity demanded
Direction demand curve slopes
Direction demand curve slopes
Downward from left to right
What causes movement along demand curve?
What causes movement along demand curve?
Only price changes
What causes shift in demand curve?
What causes shift in demand curve?
Non-price factors change
Meaning of rightward shift in demand curve
Meaning of rightward shift in demand curve
Demand increased (more demanded at every price)
Meaning of leftward shift in demand curve
Meaning of leftward shift in demand curve
Demand decreased (less demanded at every price)
Effect of higher income on demand curve
Effect of higher income on demand curve
Shifts demand curve to the right
What are substitute goods?
What are substitute goods?
Similar products used in place of another
Effect when substitute good price rises
Effect when substitute good price rises
Demand for alternative shifts right
What are complementary goods?
What are complementary goods?
Goods in joint demand, bought together
Examples of complementary goods
Examples of complementary goods
Cars & petrol, smartphones & cases, printers & ink
Effect of lower interest rates on demand
Effect of lower interest rates on demand
Shifts demand right for big-ticket items
Why essential medicines exception to law of demand?
Why essential medicines exception to law of demand?
Demand stays stable despite price rises, no substitutes available
Veblen effect
Veblen effect
Luxury goods more desirable when prices increase