Chapter 4 Test Demand

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

• Demand

• Inflation

• Want

• Supply

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

• Demand Schedule

• Demand Curve

• Inelastic

The diagram represents a

• increase in demand
• decrease in demand

The law of demand refers to how

• demand changes when people's incomes change
• demand changes when the prices of substitutes and complements change
• the quantity demanded changes when the price of the good changes
• the price of the good changes when people's demand for the good changes

Rule stating that more will be demanded at lower prices and less at higher prices

• Law of Demand

• Ability

• Marginal Utility

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

• Marginal Utility

• Substitution Effect

Movement along the demand curve showing that a different quantity is purchased in response to a change in price

• Change in quantity demanded

• Demand Curve

The portion of a change in quantity demanded caused by a change in price that makes other products more or less costly

• substitution effect

• complements

• demand

Consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right

• change in demand

• change in quantity demanded

• demand elasticity

Products related in such a way that an increase in the price of one reduces the demand for the other

• complements

• Law of Demand

• marginal utility