Econ 202 Test 1 Oct 7Th Study

Front 1

what is the definition of the damand curve?

Back 1

relates the quantity of a good that an individual or a market of individuals that will actually buy for any given price

Front 2

1st law of demand?

Back 2

demand is downsloping.
i.e if prcie goes up then quantity goes down

Front 3

what happens to quantity if price goes down?

Back 3

quantity goes up

Front 4

quantity is measured in what?

Back 4

quantity per time

Front 5

Factors that shift demand: value

Back 5

1) increase in value (taste) means increase demand
2)decrease in value means decrease in demand

Front 6

factors that shift demand:
# of buyers

Back 6

increase in the # of buyers willl increase demand
decrease the # of buyers will decrease demand

Front 7

factors that shift demand:
income

Back 7

normal goods and inferior goods

Front 8

how does normal goods shift demand curve?

Back 8

normal goods: as your income increase the increase in demand. As your income decreases then decrease in demand
ex. new cars, steak, starbucks coffee

Front 9

how does inferior goods shift demand curve?

Back 9

When income increases, demand decreases.
When income decreases demand increases
ex. used cars, rahmen noodles, tea, instant coffee

Front 10

factors that shift demand:
prices of other goods

Back 10

substitute goods and
complements