Question

directions write the answers to these questions. use complete sentences.

1. what is demand?
2. is the consumer’s willingness to buy a product enough of a factor to create a demand for that product? explain.
3. what are four factors that can affect demand?
4. why would the availability of a substitute affect the demand for a particular product?
5. does a low price mean that there always will be a high demand? explain.
6. according to the law of demand, what happens when the price of a good goes up?
7. why do businesses sometimes offer products at a special, lower sale price?
8. what is the difference between a demand schedule and a demand curve?

Explanation:

1. Demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
2. No, consumer's willingness to buy a product is not enough. They also need the ability (purchasing power) to buy it.
3. Four factors: price of the good, consumer income, prices of related goods (substitutes and complements), consumer preferences.
4. If a substitute is available, when the price of a product rises, consumers may switch to the substitute, reducing demand for the original product.
5. No. For example, if a product is of poor quality or has no utility, even at a low price, demand may be low.
6. According to the law of demand, when the price of a good goes up, the quantity demanded of that good (assuming other factors constant) decreases.
7. To increase the quantity demanded (as per the law of demand, lower price leads to higher quantity demanded), clear inventory, attract new customers.
8. A demand schedule is a table showing the relationship between price and quantity demanded. A demand curve is a graphical representation of that relationship (usually a downward - sloping curve).

Answer:

1. Demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
2. No, because consumers also need the ability (purchasing power) to buy the product.
3. Price of the good, consumer income, prices of related goods (substitutes and complements), consumer preferences.
4. Because when the price of a product rises, consumers may switch to the substitute, reducing demand for the original product.
5. No. For example, if a product is of poor quality or has no utility, even at a low price, demand may be low.
6. The quantity demanded of that good (assuming other factors constant) decreases.
7. To increase the quantity demanded (as per the law of demand, lower price leads to higher quantity demanded), clear inventory, attract new customers.
8. A demand schedule is a table showing the relationship between price and quantity demanded. A demand curve is a graphical representation of that relationship (usually a downward - sloping curve).