Chapter 4: Demand

Front

What is demand?

Back

The desire to own something and the ability to afford it.

Front

Which of the following best describes the Law of Demand? Options: As price goes down, demand goes down. (and vice versa)., As price goes down, demand goes up (and vice versa)., As demand goes down, supply goes up., As demand goes up, price becomes elastic.

Back

As price goes down, demand goes up (and vice versa).

Front

The Law of Demand "works" because of a combination of what two effects? Options: Substitution and Income Effects, Doppler and Lake Effects, The Ability and Desire Effect, The Substitution and Elasticity Effect

Back

Substitution and Income Effects

Front

A change in demand is shown

Back

with a new demand curve above or below the original demand curve

Front

A change in quantity demanded is shown

Back

at various points on the demand curve

Front

Consuming more of one good because of a change in price of another good is known as the

Back

substitution effect

Front

This occurs when you feel like you have less money when the price of a good rises.

Back

Income Effect

Front

A table that lists the quantity of a good that a single person will buy at each price in a market.

Back

demand schedule

Front

The demand curve always slopes

Back

down and to the right

Front

Price goes on ________

Back

the vertical axis