Economics Chapter 4

Front 1

Demand

Back 1

the desire, ability, and willingness to buy
represents the consumer

Front 2

microeconomics

Back 2

deals with behavior and decision making by small units, such as individuals and firms

Front 3

demand schedule

Back 3

a listing that shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time

Front 4

demand curve

Back 4

a graph showing the quantity demanded at each and every price that might prevail in the market

Front 5

law of demand

Back 5

states that the quantity demanded of a good or service varies inversely with its price *price and quantity move in different directions

Front 6

market demand curve

Back 6

demand curve that shows the quantities demanded by everyon who is interested in purchasing the product

Front 7

marginal utility

Back 7

extra usefulness or satifscation a person gets from acquiring or using one more unit of a product

Front 8

diminishing marginal utility

Back 8

statese that the extra satisfaction we get from using additional quantities of the product begins to diminish --the las unit consumed gives less satisfaction than the one before it

Front 9

substitution effect

Back 9

the change in quantity demanded because of the change in the relative price of the product

Front 10

change in demand

Back 10

demand curve shifts==> has noting to do with price

Front 11

substitutes

Back 11

products that can be used in place of other
example- buying chicken instead of steak

Front 12

complements

Back 12

use of one increases the use of the other
example -hot dogs and hot dog rolls

Front 13

pricing determines:

Back 13

1)factors of production
2) financial capital
3) diminishing marginal utility

Front 14

Law of Demand

Back 14

1)income effect
2)substitution effects- people tend to substitute for other things
3)diminishing marginal utility