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10 Cards in this Set
- Front
- Back
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demand
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the amount that consumers are willing and able to buy at each given price level
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effective demand
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demand supported by the ability to pay for a good or service
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market demand
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total demand in a market for a good, the sum of all individuals' demand, at each given price
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contractions in demand
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`falls in the quantity demanded caused by rises in prices
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extensions in demand
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increases in demand caused by fall in price
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normal goods
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goods or services that will see an increase in demand when incomes rise
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inferior goods
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goods or services that will see demand fall when income rises
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complementary products
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goods that are consumed together, for example bread and butter, or DVDs and DVD players
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composite demand
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a good that is demanded for more than one purpose so that an increase in demand for one purpose reduces the available supply for the other purpose, typically leading to higher prices, eg milk used in butter and cheese
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derived demand
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when the demand for one good or service comes from the demand for another good or service. The demand for cars stimulates the demand for steel, therefore the demand for steel is derived demand
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