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8 Cards in this Set
- Front
- Back
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law of demand
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when the price of a good goes up, then the demand for it will go down.
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factors that affect demand
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income, taste, price, expectations and market size.
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substitute goods
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two goods that a change in the price of one causes a shift in the demand for the other in the same direction as the price change. as the price goes up the demand for the other thing will go up too.
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complementary goods
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two goods that when a change in the price of one causes an opposite shift in the demand for the other.
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law of supply
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higher the price of a good the more of that good will the seller make available over time
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determines supply
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cost of input, technology, prductivity, taxes and subsideis
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normal goods
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a good for which demand increases as income increases
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inferior goods
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a good for which demand fass as income rises
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