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Economics 1.2.2 - Coggle Diagram
Economics 1.2.2
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conditions of demand
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future expectations
if prices are expected to rise in the future, demand will increase now
if prices are expected to go down in the future, demand will decrease now
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Demand
the quantity of goods and services that consumers are willing and able to buy at any given price in a period of time
law of demand states that the higher the price of the good or service, the lower the quantity demanded
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Substitution effect: when price falls, good is cheaper (relative to other goods) so consumers switch
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demand curve
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shape
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at a lower price, consumers can buy more even if their income is unchanged
fall in price makes it more price competitive so consumers switch from alternatives, increasing demand
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