Chapter 3 Vocab Flashcard

Front

Desire to own something and ability to pay for it

Back

Demand

Front

Consumers buy more of a good when its price is lower and less when higher.

Back

Law of demand

Front

Consumer reacts to a price rise by consuming less of that good and more of a substitute.

Back

Substitution effect

Front

Change in consumption due to price increase causing real income decline

Back

Income effect

Front

A table listing the quantity of a good purchased at various prices.

Back

Demand schedule

Front

A table listing the quantity of a good all consumers will buy at each price.

Back

Market demand schedule

Front

Graphic representation of a demand schedule

Back

Demand curve

Front

Latin for 'all else constant'

Back

Ceteris paribus

Front

Goods consumers demand more of with rising income

Back

Normal good

Front

Goods bought in smaller quantities or not at all

Back

Inferior good