Understanding Demand and Market Principles

Front

What are the two main principles that demand is based on?

Back

Price and Quantity available

Front

What does "Ceteris paribus" mean in the context of demand?

Back

Other things held constant

Front

What does an individual's demand schedule show?

Back

Various quantities demanded at different prices

Front

What role does price play in an individual's demand schedule?

Back

It works as an incentive.

Front

What is the demand curve based on?

Back

Demand schedule

Front

What happens to demand when prices increase according to the Law of Demand?

Back

Demand decreases

Front

What does it mean when a theory is called a "law"?

Back

It is proven true after repeated tests

Front

How does quantity demanded vary with its price?

Back

Inversely

Front

What does the Market Demand Curve show?

Back

Quantities demanded by everyone interested in buying the product.

Front

How is the Market Demand Curve related to the Individual Demand Curve?

Back

It is almost the same as the Individual Demand Curve.