Chapter 4: Individual And Market Demand, Microeconomics, Sixth Edition, Robert S. Pindyck, Daniel L. Rubinfield

Front 1

price consumption curve

Back 1

curve tracing the utility-maximizing combinations of two goods as the price of one changes.

Front 2

individual demand curve

Back 2

Curve relating the quantity of a good that a single consumer will buy to its price.

Front 3

income-consumption curve

Back 3

Curve tracing the utility-maximizing combinations of two goods as a consumer's income changes.

Front 4

Engel curve

Back 4

Curve relating the quantity of a good consumed to income.

Front 5

Substitution effect

Back 5

Change in consumption of a good associated with a change in its price, with the level of utility held constant

Front 6

income effect

Back 6

change in consumption of a good resulting from an increase in purchasing power, with relative prices held constant

Front 7

market demand curve

Back 7

Curve relating the quantity of a good that all consumers in a market will buy to its price.

Front 8

isoelastic demand curve

Back 8

demand curve with a constant price elasticity

Front 9

consumer surplus

Back 9

difference between what a consumer is willing to pay for a good and the amount actually paid (the total benefit from the consumption of a product, less the total cost of purchasing it)

Front 10

network externality

Back 10

When each individual's demand depends on the purchases of other individuals.

Front 11

bandwagoon effect

Back 11

positive network externality in which a consumer wishes to possess a good in part because others do.

Front 12

snob effect

Back 12

negative network externality in which a consumer wishes to own an exclusive or unique good.