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9 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Demand |
The ability to purchase different quantities of a goods at different prices during a time period. |
The willingness of buyers to buy good at various prices. |
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The Law of Demand |
As price rices the quantity goes down, as prices lowers the quantity goes up. |
High Price low quantity. Low price high quantity. |
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The Law of Diminishing Marginal Utility |
States that for a limited time period, the utility gained by consuming equal units of a good, will decline as the amount consumed increases. |
A Good is worth less as more is consumed. Therefore people will only buy more if price goes down. |
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Demand Curve |
Graphs the relationship between quantity and the price of a good. |
The graphical representation of the quantity demanded and the price of a good. |
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Income |
As your income rises, your willingness and ability to purchase a normal good rises, and your willingness to purchase inferior goods decreases. |
Income rises your ability to purchase normal goods increase, inferior goods decreases. |
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Prefrences |
Affects your willingness to purchase a good at a given price. |
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Substitutes |
Goods that are used in place of other goods, and fulfill similar needs. |
P⬆ Dsub ➡ P⬇ Dsub⬅ |
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Complements |
Two goods that are best used together. |
Hot dogs and Mustard |
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Number of Buyers |
As the number of buyers increases the demand curve shifts to thr right, and when it decreases it shifts to the left. |
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