Chapter 3 Terms Flashcards
an item that typically experiences a decrease in demand as buyers’ incomes increase
Inferior good
the number of units of a product that will be bought at a given price
Demand
items that are usually purchased or used together
Complimentary goods
items that resemble one another and that may be used in place of each other
Substitute goods
A graphic representation of observations of utility received from some good or service
Marginal utility curve
A leftward shift in the demand curve representing a decrease in the willingness of buyers to demand an item at any price
Decrease in demand
A graph illustrating the various quantities of an item that are demanded at various prices
Demand curve
A tabular model displaying observations of utility received from some good or service
Marginal utility schedule
A situation in which the change in the price of an item causes a change in the number demanded
Change in quantity demanded
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
Increase in demand
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 higher the price, the lower the demand
Law of demand
the shifting of a demand curve experienced when demand for an item increases or decreases regardless of price
Change in demand
an item for which demand typically increases when the buyers’ incomes increase
Normal good
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
Principal of diminishing marginal utility
A tabular model listing various quantities demanded at various prices
Demand schedule
