Module 5

Question 1

competitive market

Answer 1

market with many buyers and sellers of the same good or service
the individual does not effect the overall price

Question 2

supply and demand model

Answer 2

1) supply curve
2) demand curve
3) factors that cause the curves to shift
4) market equilibrium and shifts

Question 3

demand schedule

Answer 3

table showing how much of a good people will want to buy at different prices

Question 4

quantity demanded

Answer 4

actual amount consumers are willing to buy at a specific price

Question 5

law of demand

Answer 5

as price increases, quantity demanded decreases

Question 6

demand curve

Answer 6

graph of demand schedule

shows relationship between quantity demanded and price

Question 7

substitutes

Answer 7

a pair of goods where a rise in price of one leads to and increase in demand of the other

Question 8

complements

Answer 8

a pair of goods where a rise in price of one leads to a decrease in demand of the other
usually consumed together

Question 9

normal good

Answer 9

a good for which demand increases when consumer income increases

Question 10

inferior good

Answer 10

goods for which demand decreases when income increases

Question 11

causes of shift in demand

Answer 11

1) changes in price of related goods
2) changes in income
3) changes in tastes
4) changes in expectations
5) changes in the number of consumers