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20 Cards in this Set
- Front
- Back
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Demand |
The desire to have some good or service and the ability to pay for it. |
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Law of demand |
It states that when the price of a good or service falls, consumers buy more of it. |
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Demand Schedule |
A table that shows how much of a good or service an individual consumer is willing to pay. |
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Market Demand Schedule |
Shows how much of a good or service all consumers are willing to pay at market price. |
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Demand Curve |
a graph that shows the data found in market demand Schedule. |
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Market Demand curve |
Show the data found in the market demand schedule. |
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Law of diminishing marginal utility |
The marginal benefit from using each additional unit of a good or service during a given time period tends to decline as each is used |
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Income effect |
The term used for a change in the amount of a product that a consumer will buy because the purchasing power of his or her income changes |
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Substitution effect |
The pattern of behavior that occurs when consumers react to a change in the price of a good or service by buying a substitute product |
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Change in quality demanded |
Change in the amount of a product that consumers will buy because of a change in price |
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Change in demand |
When a change in the marketplace su h as high unemployment pronpts consumers to buy different amounts of a good or service at every price |
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Normal goods |
Goods that consumers demand more of when their income rises |
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Inferior goods |
Goods that consumers demand less when their incomes rise |
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Substitutes |
Goods and services that can be used in a place of other goods and services to satisfy consumer wants |
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Complements |
When the use of one product increases the use of another product , |
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Elasticity of demand |
Describes how responsive consumers are to price changes in the marketplace. |
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Elastic |
When a change in price either up or down leads to change the market is, the more likely the demand is elastic |
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Inelastic |
A change in price leads to a relatively smaller change in quantity demanded. |
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Unit elastic |
The percentage change in price and quantity demanded are the same |
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Total revenue |
The amount of money a company receive for selling its products |
