Law of Demand

Question 1

Market

Answer 1

Group of buyers and sellers of a particular good or service

Question 2

Competitive Market

Answer 2

Market in which there are many buyers and sellers so that each has a negligible impact on the market price

Question 3

Monpolistic Competition

Answer 3

Many sellers

Slightly differentiated products

Question 4

Quantity demanded

Answer 4

the amount of a good that buyers are willing and able to purchase

Question 5

Law of Deman

Answer 5

quantity demanded of a good falls when the price of a good rises

Question 6

Ceterus Peribus

Answer 6

All else constant

Question 7

Demand schedule

Answer 7

Table that shows the relationship between the price of the good and the quantity demanded

Question 8

Demand curve

Answer 8

Just a graph of the demand schedule

Question 9

What shifts a demand curve?

Answer 9

Consumer income 
Prices of related goods
Tastes
Expectation
# of buyers

(quantity demanded)

Question 10

Normal good

Answer 10

as income increases the demand for a good increase

Question 11

Inferior good

Answer 11

as income increases the demand for a good will decrease

Question 12

Substitutes

Answer 12

One good increases and one good decreases

Ex: CDs and iPods

Question 13

Complements

Answer 13

Both increase

Ex: iPods and music downloads

Question 14

Quantity supplied

Answer 14

The amount of a good that sellers are willing and able to sell

Question 15

Law of supply

Answer 15

quantity supplied of a good rises when the price of the good rises

Question 16

Shifts in the supply curve

Answer 16

Input prices
technology
expectations
# of sellers

(quantity demanded)