Chapter 2 Flashcards
1
Q
What is demand?
A
Consumers willingness and ability to pay for a particular product or service
2
Q
What is marginal benefit?
A
The additional benefit from a choice, changing with circumstances
3
Q
What is the law of demand?
A
If price increases, the quantity demanded decreases
4
Q
What is market demand?
A
The sum of all the demands of all individuals willing and able to buy a product or service
5
Q
What are the five ways to shift a demand curve?
A
- Preferences
- Prices of related products
- Income
- Expected future prices
- Number of consumers
6
Q
What are normal goods?
A
Products or services that you buy more of when your income increases
7
Q
What are inferior goods?
A
Products or services that you buy less of when your income decreases
