Key Terms pg 79 Flashcards
1
Q
Demand
A
The desire to own something and the ability to pay for it
2
Q
Law Of Demand
A
Consumers buy more of a good when its price decreases and less when its price decreases
3
Q
Substitution effect
A
When consumers react to an increase in a good’s price by consuming less of that good and more of other goods
4
Q
Income effect
A
the change in consumption resulting from a change in real income
5
Q
Demand schedule
A
A table that lists the quantity of a good person will buy at each different price
6
Q
Market demand schedule
A
a table that lists the quantity of a good all consumers in a market will buy at each different price
7
Q
Demand Curve
A
A graphic representation of a demand schedule
