What are the three primary conditions that must be met for a consumer to be considered as demanding a good or service?

A consumer must be willing, able, and ready to purchase the good or service.

True or False: An increase in consumer income will always lead to an increase in demand for inferior goods.

False. Demand for inferior goods decreases as consumer income increases.

Fill in the blank: The relationship between the quantity demanded of a good and the price of related goods can be classified as ___ and ___ goods.

Substitute; complementary

How does population growth affect market demand for products?

Population growth increases the number of consumers, thereby increasing market demand for various products.

What is meant by the term 'elasticity of demand'?

Elasticity of demand refers to the responsiveness of the quantity demanded of a good to a change in its price.

What are the two main classifications of demand based on the time period of consumption?

Short-term demand and long-term demand.

D) Cost of raw materials

What is 'derived demand'?

Derived demand refers to the demand for a product that arises from the demand for another product.

Fill in the blank: The law of demand states that, all else being equal, as the price of a good falls, the quantity demanded ___ .

Increases