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12 Cards in this Set
- Front
- Back
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ceteris paribus |
only the price changes |
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Advertising =
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positive advertising (increases in demand)/ negative advertising (decrease in demand)
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Tastes, preferences and fashion =
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popular/fashionable (increase in demand)/ unpopular/unfashionable (decrease in demand)
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price of a Substitute good =
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if the price of Pepsi increases (quantity demand falls) demand increases for Coca Cola/ if price of Pepsi decreases (quantity demand increases) demand falls for Coca Cola.
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price of a Complementary good =
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price of DVD player increases (quantity demand in DVD players fall) demand for DVD films falls/ price of DVD player falls (quantity demand in DVD players increases) demand for DVD films increases.
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Income =
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level earned before tax = Income increases, demand increases.
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Disposable income =
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income after tax = if income tax rates change income won't but disposable income will change
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demand schedule |
the table one |
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demand curve |
the graph one |
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thelaw of demand
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price increases, quantity demanded decreases(ceteris paribus) and vice versa
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Demand:
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the amount of a good/service a consumer is both willing and able to purchase at a given price and time
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Luxury good |
An item that is not necessary forliving, but is deemed as highly-desired within a culture or society.aspeople move into higher income brackets they are more able and more likely topurchase more expensive luxury goods.
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