Chapter 4 Over All

Front 1

Demand describes the ablilty and the desire to buy

Back 1

a good or service

Front 2

The _________ says that the quantity demanded of a good will fall as the goods price increases.

Back 2

LAW OF DEMAND *******

Front 3

2 possible responses to a change in price, the ____ and the __________ work together to create the law of demand

Back 3

subsitution effect and the income effect

Front 4

You can list deman for a good at all possible prices in a _______ and chart these points in a ____

Back 4

demand schedule and demand curve

Front 5

Every individual has a demand sched. for a good, and you can find the ____________ for the entire market by adding up all individual demand.

Back 5

demand schedule

Front 6

A deman curve shows:

Back 6

demand when price varies, but all other factors stay the same.

Front 7

When other factors change, the demand curve shifts ____ or ______

Back 7

left or right.

Front 8

When a rise in income leads a consumer to increase consuption of a good, that good is a _______

Back 8

normal good

Front 9

If a higher incime leads to lower consumption of the good, the good is callled an ____

Back 9

inferior good.

Front 10

Other factors that can affect denabd are changes in

Back 10

population, tastes and prices of other goods.

Front 11

____________- describes how strongly buyer will react to a change in a goods price

Back 11

ELASTICITY OF DEMAND.

Front 12

when demand is ______ buyers will make relativley big changes to therir consumption of a good when its price rises or falls.

Back 12

ELASTIC

Front 13

When demand is _______, consumers will only change their consumption slightly relative to the change in price.

Back 13

inelastic.

Front 14

Demand will be more ___ if the good has many subsitutes, is considered a luxury, or accounts for a large share of the buyers income.

Back 14

elastic

Front 15

____________________ can setimate the elasticity of demand for some goods and use this # to make pricing decisions.

Back 15

Entreperneurs.