Chapter 2 Flashcards
What is demand?
Demand is the relationship between the various possible prices of a product and the qauntities of that product consumers are willing to purchase.
What is quantiity demanded?
Quantity demanded is the amount of a product consumers are willing to purchase at each price.
What is the law of demand?
The law of demand states that there is an inverse relationship between a product’s quanitity demanded and its price.
What is a demand schedule?
A demand schedule is a table that shows possible combinations of prices and quanitites demand of a product.
What is a demand curve?
A demand curve is a graph that expresses possible combinations of prices and quanitites demanded of a product.
What is change in quantity demanded?
Change in quantity demanded is the effect of a price change on quantity demanded.
What are demand factors?
Demand factors are factors that can cause an increase or a decrease in a product’s demand.
What is a incease in demand?
A increase in demand is an increase in the quanitity demanded of a product at all prices.
What is a decrease in demand?
A decrease in demand is a decrease in the quanitity demanded of a product at all prices.
What are normal products?
Normal products are products whose demand changes directly with income.
What are inferiror products?
Inferior products are products whose demand changes inversely with income.
What are substitute products?
Subsititute products are products that can be consumed in place of one another.
What are complementary products?
Complementary products are products that are consumed together.
What is supply?
Supply is a relationship between the various possible prices of a product and the quanitites of the product that businesses are willing to supply.
What is quantiity supplied?
Quanitity supplied is the amount of a product businesses are willing to supply at each price.
