Demand

Question 1

Choice

Answer 1

A decision between two or more alternatives.

Question 2

Complements

Answer 2

Goods or services that are often consumed together.

Question 3

Compromise

Answer 3

An agreement to settle a conflict in which each side gives up something

Question 4

Conflict

Answer 4

A disagreement or argument (or the inability to agree)

Question 5

Consequence

Answer 5

A consequence is the outcome from choosing to do something, or not do something. Consequences can be positive, negative, or neutral.

Question 6

Consumer

Answer 6

An individual or household that demands a good or service

Question 7

Consumer spending

Answer 7

The sum of the amount a consumer is spending on a good or service (Price x Quantity)

Question 8

Demand

Answer 8

The amount of a good or service a consumer is willing and able to buy at a range of prices.

Question 9

Disposable Income

Answer 9

The income a consumer has to spend after income tax is paid. Income – income tax.

Question 10

Flow-on effect

Answer 10

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.

Question 11

Inferior Good

Answer 11

Goods that are demanded less when a consumer’s income increases.

Question 12

Luxury Good

Answer 12

Goods that are demanded more when there is a significant increase in a consumer’s income (an extreme type of normal good).