Ch 3 Flashcards
1
Q
___ is how much of something people are willing and able to buy under certain circumstances.
A
Demand
2
Q
The Law of Demand states:
A
There is an inverse relationship between price and quantity demanded.
3
Q
Name the five nonprice determinants of demand.
A
- Consumer preferences
- Prices of related goods
- Income of consumers
- Expectations of future prices
- Number of buyers in the market
4
Q
If a nonprice determinant of demand changes, how will it affect the demand curve?
A
The curve will shift
5
Q
If two goods serve similar enough purposes that a consumer may purchase one in place of the other, they are called…
A
substitutes
6
Q
Related goods that are consumed together are called…
A
Complements
