Demand Flashcards
Ceteris Paribus
Everything else remains unchanged except for the price.
Choice
A decision between two or more alternatives.
Complements
Goods or services that are often consumed together.
Compromise
An agreement to settle a conflict in which each side gives up something
Conflict
A disagreement or argument (or the inability to agree)
Consequence
A consequence is the outcome from choosing to do something, or not do something. Consequences can be positive, negative, or neutral.
Consumer
An individual or household that demands a good or service
Consumer spending
The sum of the amount a consumer is spending on a good or service (Price x Quantity)
Demand
The amount of a good or service a consumer is willing and able to buy at a range of prices.
Disposable Income
The income a consumer has to spend after income tax is paid. Income – income tax.
Income
Money received as a result of working, transfer payments or from investments.
Flow-on effect
A change that results from an earlier change in the price of a good or an earlier change in a person’s demand for a good or service.
Inferior goods
Goods that are demanded less when a consumer’s income increases.
Law of Demand
As the price of a good or service increases, the quantity demanded decreases, ceteris paribus, vice versa.
Limited Means
Our personal resources of time, income, skills.
