Demand Definitions

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  1. Demand
    The quantity of a good or service that consumers are willing and able to buy at given prices in a given period of time. For economists, demand is always effective demand
  2. Effective demand
    The desire for a good or service backed by an ability to pay
  3. Market demand
    The quantity of a good or service that all the consumers in a market are willing and able to buy at different market prices
  4. Condition of demand
    A determinant of demand, other than goodÂ’s own price, that fixes the position of the demand curve
  5. Increase in demand
    A rightward shift of the demand curve
  6. Decrease in demand
    A leftward shift of the demand curve
  7. Normal good
    A good for which demand increases as income rises and demand decreases as income falls
  8. Inferior good
    A good for which demand decreases as income rises and demand increases as incomes falls
  9. Elasticity
    The proportionate responsiveness of a second variable to a change in the first variable
  10. Price Elasticity of Demand
    The responsiveness of quantity demanded to a change in price of that good. %change in QD / %change in P
  11. Income Elasticity of Demand
    The responsiveness of quantity demanded to a change in income. %change in QD / %change in income
  12. Cross Elasticity of Demand
    The responsiveness of quantity demanded to a change in price of a different good. %change in QD of good A / %change in price of good B

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Author:
Anonymous
ID:
318691
Filename:
Demand Definitions
Updated:
2016-04-10 14:46:41
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Demand Definitions
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Demand Definitions
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