Ch. 4 Flashcards
0
Q
Law of demand
A
A good’s price is low consumers buy it more than when the good’s price is high consumers wont buy as much
1
Q
Demand
A
Desire to own something and being able to pay for it
2
Q
Substitution effect
A
Consuming less of that good and more of a substitute good
3
Q
Income effect
A
Change in consumption when a price increase causes income to decline
4
Q
Demand schedule
A
Lists the goods a person buys at the market price
5
Q
Market demand schedule
A
Lists the goods all consumers buy at various prices
6
Q
Demand curve
A
Graphic representation of a demand schedule
