Unit 5: The Demand Curve Flashcards
0
Q
Effective demand
A
Demand supported by the ability to pay for a good or service
1
Q
Demand
A
The amount that consumers are willing to buy at a given price
2
Q
Contraction in Deman
A
A fall in quantity demanded caused by an increase in price
3
Q
Extension in demand
A
A rise in quantity demanded caused by a fall in price
4
Q
Complementary goods
A
Goods consumed together
5
Q
Substitute goods
A
Goods that are used for the same purpose and be used instead of one another
6
Q
Normal good
A
A good or service that will see a increase in demand when income rises
7
Q
Inferior good
A
A good or service that will see an decrease in demand when incomes rise
8
Q
Market demand
A
The total sum in a market for a good or service. It is given by the sum of all individuals’ demand when incomes rise
