Demand Flashcards
1
Q
The law of demand says that QD and price are
A
Inversely related
2
Q
What I not held constant when moving along a stable
A
Price
3
Q
Income effect
A
Increase or decrease in purchasing power brought on by change in price
4
Q
Diminishing marginal utility
A
Utility or satisfaction decreases as more of the same product is consumed
5
Q
Demand
A
The quantity consumers are willing and able to buy at various prices during a given time period
6
Q
Elastic
A
Expensive , luxury, substitutes, has durability,
Asks a long time
7
Q
Inelastic
A
No substitute, necessity, lasts short time, no durability, cheap
