Ch-4 Flashcards
0
Q
Substitution Effect
A
When consumers react to an increase in a good’s price by consuming less of that good and more of other goods
1
Q
Demand
A
The desire to own something and the ability to pay for it
2
Q
Demand Curve
A
A graphic representation of a demand schedule
3
Q
Elasticity of Demand
A
A measure of how consumers react to a change in price
4
Q
Inelastic
A
Describes demand that is not very sensitive to a change in price
5
Q
Total Revenue
A
The total amount of money a firm receives by selling goods or services
