Intro To Demand
What is demand?
a concept specifying the different quantities of an item that will be bought at different prices.
What is the law of demand?
Rule stating that consumers will buy more of a product at lower prices and less at higher prices.
What is marginal utility?
additional satisfaction or usefulness a consumer gets from having one more unit of a product.
What is a market economy?
economic system in which people and firms make all economic decisions
What type of relationship is between the price of an item and the quantity demanded?
Inverse relationship.
What is a demand schedule?
It shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time.
What is the demand curve?
A graph showing the quantity demanded at each and every price that might prevail in the market.
Why is economics a social science?
Because it is the study of the way we behave when things around us change.
If prices dropped how would consumers react?
Consumers will be better able and more willing to buy them.
What does the market demand curve show?
Shows the demand of everyone in the market.