Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
law of demand
|
goods price goes up and the demand goes down, and visa versa
|
|
|
substitution effect
|
substituting something for a good if the price of that good goes up
|
|
|
demand schedule
|
table that lists the quantity of a good that a person will purchase at each price in a market
|
|
|
demand curve
|
a graphic representation of a demand schedule
|
|
|
demand
|
the desire to own something and the ability to pay for it
|
|
|
ceteris paribus
|
latin phrase for "all other things held constant"
|
|
|
normal goods
|
goods that consumers demand more of when their incomes increase
|
|
|
inferior goods
|
an increase in income causes demand for these goods to fall
|
|
|
complements
|
two goods htat are bought and used together
|
|
|
substitution
|
goods used in place of one another
|
|
|
demand curve
Independent? dependent |
I=quantity (x-axis)
D=prices (y-axis) |
|
|
elasticity of demand
|
measure of how consumers react to a change in price
|
|
|
inelastic
|
demand for a good that you will keep buying despite a price increase.
less than one |
|
|
elastic
|
demand that is sensitive to a price change.
greater than one |
|
|
unitary elastic
|
if elasticity is exactly equal to 1
|
|
|
total revenue
|
defined as the amount of money the company receives by selling its goods
|
