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Questions and Answers
What is the term for the quantity demanded of a good or service by individual consumers at different prices?
What is the term for the quantity demanded of a good or service by individual consumers at different prices?
- Individual Demand (correct)
- Composite Demand
- Market Demand
- Derived Demand
What type of demand refers to the demand for a good or service not for its own sake but for its use in the production of other goods?
What type of demand refers to the demand for a good or service not for its own sake but for its use in the production of other goods?
- Joint Demand
- Effective Demand
- Composite Demand
- Derived Demand (correct)
What is the term for the demand for goods that are bought and sold together?
What is the term for the demand for goods that are bought and sold together?
- Derived Demand
- Joint Demand (correct)
- Effective Demand
- Composite Demand
What type of demand is supported by the necessary purchasing power?
What type of demand is supported by the necessary purchasing power?
What is the term for a table that shows the quantities of a good or service that would be demanded by consumers at different prices?
What is the term for a table that shows the quantities of a good or service that would be demanded by consumers at different prices?
What type of goods are exceptions to the law of demand, where a rise in price leads to an increase in demand?
What type of goods are exceptions to the law of demand, where a rise in price leads to an increase in demand?
What is the term for goods that are essential items with little to no substitutes, and a rise in price leads to an increase in demand?
What is the term for goods that are essential items with little to no substitutes, and a rise in price leads to an increase in demand?
What type of demand is affected by expectations, such as future prices?
What type of demand is affected by expectations, such as future prices?
What is the term for the total quantity of a good or service that would be demanded by all consumers at different prices?
What is the term for the total quantity of a good or service that would be demanded by all consumers at different prices?
What type of demand refers to the demand for goods that have more than one use?
What type of demand refers to the demand for goods that have more than one use?
Flashcards
Individual Demand
Individual Demand
The quantity demanded by individual consumers at various prices.
Derived Demand
Derived Demand
Demand for a good or service used to produce other goods.
Joint Demand
Joint Demand
Demand for goods bought and sold together.
Effective Demand
Effective Demand
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Demand Schedule
Demand Schedule
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Snob and Giffen Goods
Snob and Giffen Goods
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Giffen Goods
Giffen Goods
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Demand affected by expectations
Demand affected by expectations
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Market Demand
Market Demand
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Composite Demand
Composite Demand
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Study Notes
Types of Demand
- Individual Demand: The quantity demanded of a good or service by individual consumers at different prices.
- Market Demand: The aggregate quantity of a good/service that would be demanded by all consumers at different prices.
- Derived Demand: Applies to factors of production, where demand for a good is not for its own sake but for its use in the production of other goods.
- Composite Demand: Applies where goods have more than one use, and an increase in demand for one product can result in a fall in supply for another.
- Joint Demand: Refers to complementary goods that are bought and sold together, such as fish and chips.
- Effective Demand: Demand that is supported by the necessary purchasing power, referring to the willingness and ability of consumers to purchase goods/services at different prices.
Demand Schedule
- A table that gives the quantities of a good/service that would be demanded by consumers at different prices.
Exceptions to the Law of Demand
Snob Goods/Veblen Goods
- The high price of these goods makes them attractive to those who can afford them.
- A rise in price could lead to a rise in consumption.
Giffen Goods
- Essential items with little to no substitutes.
- Those on low income purchase them.
- When price rises, demand also rises, e.g. in the 1800s, if the price of bread rose, demand for bread also rose as people had to replace their one meal of meat with another meal of bread.
Goods Affected by Expectations
- When property prices begin to fall, consumers may hold off on buying as they wait for prices to fall further.
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Description
This quiz covers the different types of demand, including individual demand, market demand, derived demand, and composite demand, in the context of economics and microeconomics.
