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12 Cards in this Set
- Front
- Back
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Scarcity
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Unlimited wants but limited means
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Opportunity Cost
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The second best choice
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Values
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Core beliefs / key principals / most important
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Demand
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The amount of a good or a service that a consumer is willing to buy at a range of prices
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Law of Demand
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When the price of a good or service decreases, its quantity demanded increases ceteris paribus
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Ceteris Paribus
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All other things stay the same
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When does QD change?
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When it's price changes
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Normal Goods
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Good quality products consumers demand more of when their income increases
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Inferior Goods
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Cheap, low quality products that consumers demand less of when their income increases
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Aggregate Household Spending
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Total spending of all households
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Luxury goods
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Goods consumers will buy more of when their income increases
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Compliment good
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Goods that go with other goods
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