Demand Flashcards
A tangible product that consumers, firms, or governments withs to purchase
good
An often intangible product or action that consumers, firms, or governments with to produce
service
The inputs used to produce goods and services; also known as factors of production
resources
A principle in economics that states that as the price of a good, servide, or resource rises, the quantity demanded will decrease, and vice versa, all else held constant.
law of demand
A tabular representation of the relationship between the price of a good, sercie, or resource and the quantities consumers are willing and able to buy over a fixed time period, all else held constant.
Demand schedule
A graphical representation of the relationship between the price of a good, service, or resource and the quantities consumers are willing and able to buy over a fixed time period, all else held constant.
Demand curve
The quantity of a good, service, or resource that consumers are willing and able to buy at a given price.
Quantity demanded
The effect that a change in the price of a good, service, or resource has on the purchasing power of income.
income effect
The effect that a change in the price of one good, sercie, or resource has on the demand for another.
substitution effect
The negative relationship between the quantity of a good, service, or resource and the marginal utility obtained from each additional unit consumed in a give period.
Diminishing marginal utility
The overall, or total, demand for a good, service, or resource.
market demand
A change in the quantity of a good, service, or resource demanded at every price. Non-price related
change (shift) in demand
A change in the quantity of a good, service, or reource demanded due to a change in its price.
Movment along the demand curve
A good for which there is a direct relationship between the demand for the good and income.
Normal good
A good for which ther is an inverse relationship between the demand for the good and income.
inferior good
The perception of the desirability associated with consuming a good, service, and resources.
tastes and preferences
Market participants who seek to obtain goods, services, and resources
buyers
expectations
The anticipation by individuals and firms of costs and benefits that lie in the future
goods, services, or resources that are viewed as replacements for one another.
substitutes
