Chapter 4 Flashcards
1
Q
Demand schedule
A
A table that shows the relationship between the price of a good and the quantity demanded
2
Q
The demand curve sloped downward because
A
A lower price means greater quantity demanded and higher price means a lower quantity demanded
3
Q
Normal good
A
And increase in income leads to and increase to demand and a decrease of income leads to a decrease in demand
4
Q
Inferior good
A
Demand of a good rises when income falls and
Increase of income leads to decrease of a demand
5
Q
Substitutes
A
Increase price of one leads to and increase demand for other
Vice verse
6
Q
Compliments
A
Increase price of one leads to a decrease of price to another
Cereal and milk ; gas and cars
7
Q
Quantity demanded
A
The amount of a that buyers are willing and able to purchase
