Economics-Chapter 4-Demand

How do businesses create a market demand schedule?

Businesses survey customers asking them how many good/service they would be willing to buy at a giving price. Review sales figures to how many good/service were bought at each price.

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Demand schedule show the law of demand in chart form

What is demand?

Desire to have some good/service and the ability to pay for it... without the ability to pay for the good/ service, economist would say that you have no actual demand

What is market research?

Gathering and evaluating of information about customer preference

What is a market demand curve?

Graph showes the data found in the market demand schedule. Displays the data from a market demand schedule. Shows the quantity that all consumer of the market as a whole are willing and able to buy at each price.

What is a demand curve?

Graph that shows how much of good/service an individual will buy @ each price. Displays the data from an individual demand schedule

What type if relationship do price and quantity demanded have?

Inverse or opposite relationships Price falls -buy more Price increases- buy less

What is one of the major influences on demand?

Price.

What is a market demand schedule?

Shows how much of a good/service ALL CONSUMERS are willing and able to buy at each price in a market.

What is the law of demand?

States when the price of a good/service falls, consumer buy more of it. As the price of a good/service increases, consumers buy less of it.

What is a demand schedule?

Table that shows how much of a good/service on individual consumers is wiling and able to purchase at each price in a market.

What does a market demand curve show?

The sum of the information on the individual demand curve of all consumer in a market.

How do you create a demand curve?

Transfer the data from table formate to graph formate