4.1 Flashcards
1
Q
The desire to own something and the ability to pay for it
A
Demand
2
Q
Consumers will buy more of a good when its price is lower and less when its price is higher
A
Law of demand
3
Q
When consumers react to an increase in a good’s price by consuming less of that good and more of a substitute good
A
Substitution effect
4
Q
Change in consumption that results when a price increase causes real income to decline
A
Income effect
5
Q
A table that lists the quantity of a good a person will buy at various prices in a market
A
Demand schedule
6
Q
A table that lists the quantity of a good all consumers in a market will buy at various prices
A
Market demand schedule
