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