Create an account
The law of demand
As the demand increases the price increases. A fall in price of good or service will lead to increase in quantity demanded ceteris paribus
Low quality goods and services that individuals buy less of as their income increases
PRODUCTS THAT CAN BE USED IN PLACE OF SOMETHING ELSE, FOR EXAMPLE, BUTTER IN PLACE OF MARGARINE. a PRICE INCREASE FOR ONE PRODUCT CAUSES DEMAND FOR THE OTHER PRODUCT TO INCREASE
The next best alternitive forgone when a decsion is made. It is the real cost of any decision and is the other good/service that could have been produced with the same recourses.
What will cause a shift in a demand curve?
Income, income (direct) tax, advertising, taste/fashion/ price of a subsitute, price of a complement.
Causes of shifts of the demand curve to the right.
Increased disposable incomes, decreases income ( direct) tax, increased advertising for a product, price of a complement falls, price of a complement increases, product is more fashionable.
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together