Demand Concepts

Front

What happens when the price of a product falls?

Back

People become more willing and able to buy it.

Front

What does a demand schedule list and what does a demand curve show?

Back

A demand schedule lists the different quantities of a product demanded at different prices, while a demand curve shows this relationship graphically.

Front

What causes an extension in demand?

Back

A fall in the price of the product.

Front

What causes a contraction in demand?

Back

A rise in the price of the product.

Front

What are some causes of a change in demand?

Back

Changes in income, changes in the price of substitutes and complements, advertising campaigns, changes in population size and age composition, and changes in taste and fashion.

Front

What effect does an increase in demand have on the demand curve?

Back

It shifts the demand curve to the right.

Front

What effect does a decrease in demand have on the demand curve?

Back

It shifts the demand curve to the left.

Front

What happens in the demand curve of a country if the population grows?

Back

The demand curve shifts to the right. (extends)