Chapter 3 Terms Flashcards

1
Q

The tendency of people to receive less and less additional satisfaction from any good or service as they obtain more and more of it during a specific amount of time.

A

Principle of diminishing marginal utility

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2
Q

A tabular model displaying observations of utility received from some good or service.

A

Marginal utility schedule

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3
Q

A graphic representation of observations of utility received from some good or service.

A

Marginal utility curve

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4
Q

The number of units of a product that will be bought at a given price.

A

Demand

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5
Q

A law stating that, everything else being held constant, the lower the price charged for a good or service, the greater the quantity people will demand and the high the price, the lower the demand.

A

Law of demand

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6
Q

A tabular model listing various quantities demanded at various prices

A

Demand schedule

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7
Q

A graph illustrating the various quantities of an item that are demanded at various prices.

A

Demand curve

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8
Q

A situation in which the change in the price of an item cause a change in the number demanded.

A

Change in quantity demanded

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9
Q

The shifting of a demand curve experienced when demand for an item increases or decreases regardless of price

A

Change in demand

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10
Q

A rightward shift in the demand curve representing a willingness on the part of buyers to demand more of a good or service at any price.

A

Increase in demand

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11
Q

A leftward shift in the demand curve representing a decrease in the willingness of buyers to demand an item at any price.

A

Decrease in demand

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12
Q

An item for which demand typically increases when the buyers’ incomes increases.

A

normal goods

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13
Q

An item that typically experiences a decrease in demand as buyers’ income increases.

A

Inferior goods

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14
Q

Items that resemble one another and that may be used in place of each other

A

Substitute goods

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14
Q

Items that are usually purchased or used together.

A

Complementary goods

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