Demand and Supply Concepts

Front

What does the Law of Demand state?

Back

As the price of a good or service increases, the quantity demanded decreases.

Front

Who demands goods and services in the product market?

Back

Individuals

Front

What does the demand curve graph illustrate?

Back

The relationship between the price of a good or service and the quantity demanded.

Front

What is a normal good?

Back

A good for which demand increases as income increases.

Front

What is an inferior good?

Back

A good for which demand decreases as income increases.

Front

What causes a movement along the demand curve?

Back

A change in the price of the good or service.

Front

What causes a shift of the demand curve?

Back

A change in the price of related goods, such as substitutes or complements.

Front

What does the acronym INSECT stand for in demand curve shifters?

Back

Income, Number of buyers, Substitutes, Expectations, Complements, Tastes

Front

What happens when the demand curve shifts to the left?

Back

Buyers demand less of the good at each price.

Front

What is the relationship between substitute goods?

Back

Substitute goods have an inverse relationship in demand.