The Law of Demand- there is an inverse relationship between price and quantity demanded
What causes a change in quantity demanded?
⃤ in price
What causes a change in demand?
⃤ in number of buyers
population: mass buying products from sellers
⃤ in buyers taste
preference: a new trend or craze buyers want
⃤ in income
inferior goods- goods that people buy less of when their income rises
normal goods- goods people buy when their income increases.
⃤ in price of related goods
substitute: goods that serve roughly the same purpose to buyers
complimentary goods: goods that are often consumed together
⃤ in expectations
goods that people buy when their income increases
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Are goods that are necessary for survival, like water and different types of medicine, considered inferior, normal, both, or neither? What kind of category do they belong in?
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