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The Price Mechanism and Its Applications

Quick questions on Demand and the law of demand explained: H2 Economics

5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the law of demand?
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"Demand" here means effective demand: the desire for a good backed by the willingness and ability to pay, not mere want.
What is determinants that shift demand?
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The main shifters, sometimes remembered as the non-price factors, are:
What is q1?
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State the law of demand. [2 marks]
What is q2?
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Explain why a rise in income shifts the demand curve for a normal good. [2 marks]
What is q3?
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A good's price rises. Explain why this is a movement along, not a shift of, the demand curve. [3 marks]

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