Economics Chapter 4 Demand

The change in consumption resulting from a change in real income

• demand curve

• income effect

• elastic

• inferior good

What determines how a change in prices will affect total revenue for a company?

• elasticity of demand

• the company's pricing policy

• values of elasticity

• the consumers' incomes

The way that a change in price determines whether or not consumers buy goods

• elasticity of demand

• substitution effect

• law of demand

• complement

A shift in the demand curve means ...

• a change in demand at every price

• a rise in prices

• a decrease in both price and quantity demanded

• a change in consumer income

A graphic representation of the quantities of a good that will be bought at each price

• demand curve

• income effect

• elastic

• inferior good

A good that is always used with another good

• elasticity of demand

• substitution effect

• law of demand

• complement

a good that replaces another demanded good

• law of demand

• inferior good

• substitute

• complement

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• consumption

• demand

• elasticity

• allocation

what happens when consumers react to an increase in a good's price by consuming less of that good and more of other goods?

• complement effect

• law of demand

• substitution effect

• ceteris paribus

a good that consumers will demand more of when their incomes increase?

• inferior good

• complement

• demand curve

• normal good