Competitive Demand Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

PERSONALISED 1-TO-1 TUTORING

Need more help on this topic? Get 1-to-1 support

Get support with clear explanations, practice and feedback (Ages 5 to 16).

  • DBS-checked tutors
  • Flexible times
  • Parents can be updated

Want an ad-free experience? Subscribe to remove ads

What is competitive demand?

It is when goods can be used instead of each other. They compete for the same buyers.

What is a substitute good?

A good that replaces another in use, like tea instead of coffee.

If the price of one substitute rises, what happens to demand for the other?

Demand for the other rises. Its demand curve shifts right.

If the price of butter rises, what happens to demand for margarine?

It increases, as buyers switch to margarine.

Does a change in a rival’s price cause a movement along or a shift of the demand curve?

A shift of the demand curve.

How is competitive demand different from complementary (joint) demand?

Substitutes are used instead of each other. Complements are used together. A cheaper substitute lowers demand for the other; a cheaper complement raises demand for the other.

How is competitive demand different from composite demand?

Composite demand is for one good with many uses (like milk for drinking or cheese). Competitive demand is between different goods that replace each other.

Name two pairs of goods in competitive demand.

Tea and coffee; bus and train travel.

What happens when two goods are close substitutes?

Small price changes can make many buyers switch between them.