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13 Cards in this Set
- Front
- Back
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law of demand |
buy more the price increases, buy less the price decreases |
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substitution effect |
buying something else based on the prices |
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demand curve |
left to right |
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celeris poribus |
all other things held constant |
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change in quantity demanded |
goes along the curve |
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change in demand |
moves the curve |
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inferior goods |
a good that consumers demand less of when their income increases |
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complements |
two goods that are bought and used together |
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substitutes |
goods used in place of one another |
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elasticity of demand |
a measure of how consumers react to a change in price |
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elastic |
describes demand that is very sensitive to a change in price (>1) |
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inelastic |
describes demand that is not very sensitive to a change in price (<1) |
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factors of demand elasticity |
availability of substitutes, relative importance/portion of income, necessity vs. luxury, change over time |
