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14 Cards in this Set

  • Front
  • Back
the desire, ability, and willingness to buy
represents the consumer
deals with behavior and decision making by small units, such as individuals and firms
demand schedule
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
demand curve
a graph showing the quantity demanded at each and every price that might prevail in the market
law of demand
states that the quantity demanded of a good or service varies inversely with its price *price and quantity move in different directions
market demand curve
demand curve that shows the quantities demanded by everyon who is interested in purchasing the product
marginal utility
extra usefulness or satifscation a person gets from acquiring or using one more unit of a product
diminishing marginal utility
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
substitution effect
the change in quantity demanded because of the change in the relative price of the product
change in demand
demand curve shifts==> has noting to do with price
products that can be used in place of other
example- buying chicken instead of steak
use of one increases the use of the other
example -hot dogs and hot dog rolls
pricing determines:
1)factors of production
2) financial capital
3) diminishing marginal utility
Law of Demand
1)income effect
2)substitution effects- people tend to substitute for other things
3)diminishing marginal utility