ECONOMICS CHAPTER 4 LESSON 1

Front

demand

Back

combination of desire, ability, and willingness to buy a product

Front

microeconomics

Back

branch of economic theory that deals with behavior and decision making by small units such as individuals and firms

Front

demand schedule

Back

listing showing the quantity demanded at all possible prices that might prevail in the market at a given time

Front

incentive

Back

something that motivates

Front

demand curve

Back

graph showing the quantity demanded at every possible price that might prevail in the market at a given time

Front

Law of Demand

Back

rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded

Front

market demand curve

Back

demand curve that shows the quantities demanded by everyone who is interested in purchasing a product at all possible prices

Front

marginal utility

Back

satisfaction or usefulness obtained from acquiring one more unit of a product

Front

diminishing marginal utility

Back

decrease in satisfaction or usefulness as additional units of a product are acquired