Week 4

Question 1

The relationship between the price of a good and the quantity that consumers are willing and able to buy per period, other things constant.

Answer 1

Demand

Question 2

The relationship between the price of a good and the quantity that consumers are willing and able to buy per period, other things constant.

(-When the price goes up, the quantity demanded goes down.
-When the price goes down, the quantity demanded goes up.)

Answer 2

Law of Demand

Question 3

Consumers switch to cheaper goods when prices rise.

Answer 3

Substitution Effect

Question 4

Lower prices increase real income.

Answer 4

Income Effect

Question 5

Shows relationship between price and quantity demanded.

Answer 5

Demand Curve

Question 6

The point where the quantity demanded equals the quantity supplied

Answer 6

Market Equilibrium

Question 7

A table presenting the quantity demanded for a good or service at various prices.

Answer 7

Demand Schedule