The Law of Demand
Law of Demand
applies to the behavior of consumers; states that as price increases, demand decreases and as price decreases, demand increases
Which does the law of demand do?
-allows producers to respond to consumers -allows consumers to influence prices
An example of complementary goods would be....
....computers and printers.
Consumers create demand for....
....goods and services.
An example of a substitute good would be a....
....lower-priced gallon of milk.
A factor that most influences changes in consumer demand is....
....price.
A demand curve shows how changes in....
....quantity affect price.
Which best explains how the law of demand affects consumers?
It helps consumers tell producers when prices are too high.
Which most likely accounts for the changes shown on the demand curve?
More consumers want a product.
elasticity
the responsiveness of an economic factor to change in other factors, such as price
complementary goods
goods that are associated with the use of other goods
substitute goods
goods that can replace another in fulfilling the needs of consumers
Which best describes a reason that consumer demand can change?
loss of income
demand
the ability or desire to buy a good or service
price
the amount for which a good is sold
income
the money o person earns for providing a service or selling goods