Demand Flashcards
1
Q
A
2
Q
D curve
A
shows Qty D at any given price lvl
- Change in price … movement along curve
3
Q
Extension of D
A
Qty D increase bc price increase → movement down curve
4
Q
contraction of D
A
Qty D decrease bc price increases → movement up curve
5
Q
C Surplus
A
Diff between how much C are prepared to pay for a good & what they acc pay
6
Q
law of diminishing marginal utility
A
satisfaction the C gained from the last consumed falls greater than the no. consumed
7
Q
conditions of D
A
P opulaction
I ncome tax
N o of firms
S ubstitule gs
W eather
I ncome
C complementary gs
8
Q
Diminishing Marginal Utility
A
Increase consumption of gs … decrease Utility from each extra unit consumed
9
Q
Marginal Utility
A
change total Satisfaction from consuming extra unite
