Topic 3 Vocabulary

Front

The desire and ability of consumers to purchase a good or service at a given price.

Back

Demand

Front

The branch of economics that studies how individuals and businesses make decisions about the allocation of resources.

Back

Microeconomics

Front

The principle that, all else being equal, as the price of a good or service decreases, the quantity demanded increases, and vice versa.

Back

Law of Demand

Front

A table that shows the quantity of a good or service that consumers are willing to buy at different prices.

Back

Demand Schedule

Front

The change in the quantity demanded of a good or service due to a change in the consumer's income.

Back

Income Effect

Front

The change in the quantity demanded of a good or service when a substitute good's price changes.

Back

Substitution Effect

Front

A graphical representation of the relationship between the price of a good and the quantity demanded.

Back

Demand Curve

Front

The amount of money that consumers have available to spend on goods and services.

Back

Consumer Income

Front

A good for which demand increases when consumer income rises.

Back

Normal Good

Front

A good for which demand decreases when consumer income rises.

Back

Inferior Good