Quiz 2 Flashcards
A ______________ is a graph that shows how much of a good or service an individual will buy at each price
demand curve
The demand curve should slope downward from the _________________
upper left to lower right
A _____________ shows the sum of the information on the individual demand curves of all consumers in a market
market demand curve
the _____________ displays prices and the horizontal axis displays quantities prices and the horizontal axis displays quantities demanded
vertical axis
the_______________________ states that the marginal benefit of using each additional unit of using benefit of using each additional unit of a product during a given period will decline
law of diminishing marginal utility
Economists have identified two patterns of behavior as causes:the ________________________
income effect and the substitution effect
the _____________ is the term used for a change in the amount of a product that a consumer will buy because purchasing power of his/her income changes
income effect
The _________________ is the pattern of behavior that occurs when consumers react to a change in the price of a good or service by buying a substitute product
substitution effect
A change in the amount of a product that consumers will buy because of a change in price is called a change in the ______________
quantity demanded
Change in demand is also called a ________________ because it actually shifts the position of the demand curve
shift in demand
six factors can cause a change in demand:___________________________
income,market size, consumer taste, consumer expectations, substitute goods, and complementary goods
Changes in income also affect _____________
market demand curves
___________ are goods that consumers demand more of when their income rise
Normal goods
_______________ are goods that consumers demand less of when their income rise
Inferior goods
