1.Demand.

How does a chance in price of goods or services affect the quantity that buyers demand? The economic law that states that demand for a product varies inversely with its price.

The law of demand states that the demand for a product varies inversely with its price, all other factors remaining equal. Explain what other factors are mean? Factors other than a good’s price which affect the amount consumers are willing to buy are called the non-price determinants of demand. The law of demand expresses the relationship between prices and the quantity of goods and services that would be purchased at each and every price. In other words, the higher the price of a product, the lower the quantity demanded.

What are complementary goods? Complementary goods is the two goods tend to be consumed or used together in relatively fixed or standardized proportions.

What causes the demand for an economic product to increase or decrease at each and every price? The quantity purposed this product causes the demand for this product.

What demand is considered as elastic? Demand is called elastic if a small change in price has a relatively large effect on the quantity demanded.

What does demand schedule show? A table showing the quantities of a product that would be purchased at various prices at a given time.

What does the law of demand state? Law of demand the economic law that states that demand for a product varies inversely with its price.

What does the price elasticity of demand mean? The number and quality of substitutes for a product are the basic influence on price elasticity of demand.

What factors alter consumer demand? Change in the price, product availability.

What goods and services is demand elastic for? Non-essential commodities.

What goods are called necessities? Things need to support life.

What goods are called substitutes? Substitutes is a product or service that partly satisfies the need of a consumer that another product or service fulfills.

What is demand curve? What does the demand curve represent? The graphical representation of how demand for something varies in relation to its price.

What is demand? Demand is the level of a consumer’s willingness, ability and desire or need that exist for particular goods or services.

What is elasticity as an economic concept? An economic concept which is concerned with a shift in either demand for or supply of an economic product as the result of a change in a product’s price.

What is the difference between demand and quantity demanded? Demand refers to how much of a product or service is desired by buyers. The quantity demand is the amount of a product that people are willing to buy at a certain price.

What is the difference between elastic and inelastic demand? Demand is called elastic if a small change in price has a relatively large effect on the quantity demanded. Some essential goods that are relatively inexpensive and for which it is difficult to find substitutes are said to have inelastic demand.

When demand is said to be inelastic? Demand for which a large change in price leads to only a small change in demand.

When does a price change bring about only a slight change in the quantity demanded? When we have inelastic demand.

When does a price change cause a sharp change in the quantity demanded?When we have elastic demand.

Where do the laws of supply and demand begin to work? Since contemporary economies rely on the market forces of supply and demand instead of government forces to distribute goods and services there must be a method for determining who gets the products that are produced. This is where the laws of supply and demand begin to work.

Why do economists use such economic model as demand curve? It shows an inverse relationship between the price and the quantity demanded. Or to put it another way, the demand curve represents the quantities of a product or service which consumers are willing and able to buy at various prices, all non-price factors being equal.

Why does a price increase of a product discourage consumers to buy it? Increase prices is not arrantly needed goods hinders consumers from buying them at the current price.

Why does elasticity vary among products? If the prices of substitutes remain the same, a rise in the product’s price will discourage consumers from buying this product.

Why is demand for necessities inelastic? Some essential goods that are relatively inexpensive and for which it is difficult to find substitutes are said to have inelastic demand.

Why is the theory of supply and demand considered one of the most fundamental concepts of economics? Because demand refers to how much of a product or service is desired by buyers while supply represents how much the market can offer.