microeconomics chapter two

Question 1

individual demand curve

Answer 1

graph plotting item’s quantity at each price
holds other things constant

Question 2

law of demand

Answer 2

tendency for quantity demanded to be higher when price lower

Question 3

rational rule for buyers

Answer 3

buy more item if marginal benefit of +1 greater than or equal to price

Question 4

rightward shift

Answer 4

increase in demand

Question 5

leftward shift

Answer 5

decrease in demand

Question 6

inferior goods

Answer 6

good for higher income = decrease in demand

Question 7

social pressure

Answer 7

shifts demand curves

Question 8

complementary goods

Answer 8

good’s higher price decrease demand for another good or vice versa

Question 9

network effect

Answer 9

produce/service more useful when others use it

Question 10

change in price CAN’T

Answer 10

shift market demand curve

Question 11

PEPTIC = things shift demand curve

Answer 11

preferences
expectations
price of goods
type/number of buyers
income
congestion/network effect

Question 12

demand schedule

Answer 12

relationship w price of a product/quantity demanded

Question 13

quantity demand

Answer 13

amount of good/service people buy if they could buy all at current price

Question 14

effective demand

Answer 14

willingness/ability to pay

Question 15

determinants of demand

Answer 15

own price < movement

Question 16

own price

Answer 16

movement along