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10 Cards in this Set

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  • Back
  • 3rd side (hint)
What is Substitution Effect?
The Substitution Effect describes the tendency of consumers to substitute a similar, lower priced product for another product that is relativley more expensive.
Good Value Green Beans vs. Green Giant Green Beans.
What is Quantity demanded?
It describes the amount of a good or service that a consmer is willing and able to buy at each particular price during a goven time period.
I can buy 3 cd's on saturday.
Name one of the 5 determinants of demand.
1)Consumer tastes and preferences
2)Market Size
4)Prices of related goods
5)Consumer Expectations
I make $500 bucks a month, and I like rap music.
What are Complementary Goods?
Goods that are commonly used with other goods.
Paintbrushes - Paint, Peanut Butter - Jelly, Ham - Bread.
How can a goods elasticity change?
1)If the product is not a necessity.
2)If there are readily available substitutes
3)If the product's cost represents a large portion of consumers' income.
I don't need you anymore.
What is another name for total revenue?
Total receipts
you get these when you buy things at stores.
What does the Law of Supply state?
Producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices.
More stuff = higher prices - less stuff = lower prices
What is a Supply Curve?
It plots on a graph the information from the supply schedule.
not demand curve
What are one of the determinants of supply?
Government Tools
What is Tax?
a required payment of money that goes to the government to help fund government services.
Uncle Sam