Ch 4: Demand Terms

Front

Law of Demand

Back

consumers buy more of a good when its price decreases and less when its price increases

Front

Substitution Effect

Back

when consumers react to an increase in a good's price by consuming less of that good and more of other goods

Front

Income Effect

Back

the change in consumption resulting from a change in real income

Front

Demand Schedule

Back

a table that lists the quantity of a good a person will buy at each different price

Front

Market Demand Schedule

Back

a table that lists the quantity of a good all consumers in a market will buy at each different price

Front

Demand Curve

Back

a graphic representation of a demand schedule

Front

Ceteris Paribus

Back

a Latin phrase that means 'all other things held constant'

Front

Normal Good

Back

a good that consumers demand more of when their incomes increase

Front

Inferior Good

Back

a good that consumers demand less of when their incomes increase

Front

Complements

Back

two goods that are bought and used together