Demand

Front 1

The forces of supply and demand establish the _____ that best serves both producers and consumers

Back 1

price

Front 2

_____ is the desire to have a good or service and the ability to pay for it

Back 2

Demand

Front 3

_____ is one of the major factors that influences demand

Back 3

Price

Front 4

The ________ states that when the price of a good or service falls, consumers will buy more of it

Back 4

The law of demand

Front 5

______ and ______ have an inverse relationship

Back 5

Quantity demanded and price

Front 6

A __________ is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in the market

Back 6

demand schedule

Front 7

A _________ shows how much of a good or service all consumers are willing and able to buy at each price in a market

Back 7

market demand schedule

Front 8

The ___-hand column of the market demand schedule lists various prices of a good/service. The ___-hand column shows the quantity demanded of the good/service at each price.

Back 8

left, right

Front 9

A ________ is a graph that shows how much of a good or service an individual will buy at each price. It would slope downward from the upper left to lower right

Back 9

demand curve

Front 10

A __________ shows the data found in the market demand schedule

Back 10

market demand curve

Front 11

A _____ shows the sum of the information on the individual demand curves of all consumers in a market

Back 11

market demand curve

Front 12

On a market demand curve, the ____ axis displays prices and the ____ axis displays quantities demanded

Back 12

vertical, horizontal

Front 13

________________ states that the marginal benefit of using each additional unit of a product during a given period will decline

Back 13

The law of diminishing marginal utility

Front 14

_______ is the satisfaction gained from the use of a good or service

Back 14

utility

Front 15

Economists have identified two patterns of behavior as causes: the _____ and the ______

Back 15

income effect and substitution affect

Front 16

The _____ is the term used for a change in the amount of a product that a consumer will buy because purchasing power of his or her income changes

Back 16

income effect

Front 17

The ______ is 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

Back 17

substitution affect

Front 18

A change in the amount of a product that consumers will buy because of a change in price is called a change in the ______

Back 18

quantity demanded

Front 19

Each change in quantity demanded is shown by a new point on the _______

Back 19

demand curve

Front 20

Price does not cause a ____ in the demand curve. Price causes a ________ the demand curve

Back 20

shift, movement along

Front 21

Change in demand is also called a ______ because it actually shifts the position of the demand curve

Back 21

shift in demand

Front 22

Six factors can cause a change in demand:

Back 22

Income, market size, consumer tastes, consumer expectations, substitute goods, and complementary goods.

Front 23

Changes in ______ also affect market demand curves

Back 23

income

Front 24

When the incomes of most _____ in a market rise or fall, the total _____ in that market also usually rises or falls

Back 24

consumers, demand

Front 25

_____ are goods that consumers demand more of when their incomes rise

Back 25

normal goods

Front 26

_____ are goods that consumers demand less of when their income rise (used books and generic food products)

Back 26

inferior goods

Front 27

_____ has a strong influence on consumer tastes

Back 27

Advertising

Front 28

Your _____ for the future can affect your ____ habits today

Back 28

expectation, buying

Front 29

Goods and services that can be used in place of other goods and services to satisfy consumer wants are called _______

Back 29

substitutes

Front 30

Demand for the substitute will _____ while demand for the original item ______

Back 30

increase, decrease

Front 31

_____ can be used in place of each other

Back 31

substitutes

Front 32

When the use of one product increases the use of another product, the two products are called _______

Back 32

complements

Front 33

In contrast to substitutes, _____ are goods or services that work in tandem with each other

Back 33

complements

Front 34

Economists use the term ______ to describe how responsive consumers are to price changes in the marketplace

Back 34

elasticity of demand

Front 35

Demand is _____ when a change in price, either up or down, leads to a relatively larger change in the quantity demanded

Back 35

elastic

Front 36

Demand is _____ when a change in price leads to a relatively smaller change in the quantity demanded

Back 36

inelastic

Front 37

Elastic goods and services are often said to be ______

Back 37

price sensitive

Front 38

In the case of ________, changes in price have little impact on the quantity demanded

Back 38

inelastic demand

Front 39

Goods that have a larger number of substitutes fall into the ______ category

Back 39

elastic

Front 40

The _____ demand curve has a steeper slope than the _____ demand curve does

Back 40

inelastic, elastic

Front 41

Demand is said to be _____ when the percentage change in price and quantity demanded are the same

Back 41

unit elastic

Front 42

No good or service is ever really ______

Back 42

unit elastic

Front 43

Three things determine elasticity:

Back 43

Substitute goods or services, Proportion of income, Necessities vs Luxuries

Front 44

If there are no substitutes for a good or services, demand for it tends to be ______

Back 44

inelastic

Front 45

The _____ of your ____ that you spend on a good or service is another factor that affects elasticity

Back 45

percentage, income

Front 46

Demand for products that cost little of your income tends to be ______

Back 46

inelastic

Front 47

A ______ is something you must have, such as food or water. The change in quantity demanded is smaller than the change in price, so demand is _____

Back 47

necessity, inelastic

Front 48

A ______ is something that you desire but that is not essential to your life, such as a plasma television. Demand for this tends to be _____

Back 48

luxury, elastic