Ch 4 Demand

The desire, ability and willingness to buy a product.

• supply

• demand

• needs

• wants

Type of economics study to determine how individual economic decisions are made.

• macroeconomics

• microeconomics

• bank statement

• TPS Reports

In this type of economy, people and firms act in their own best interests.

• command economy

• market economy

• mixed economy

• fascist economy

Lower prices leads to higher demand.

• Law of Supply

• Law of Demand

• Law of Economics

• Law of Supply and Demand Song Hi-ho the market O

Extra usefulness, or additional satisfaction a person gets from acquiring or using one more unit of a product.

• marginal utility

• diminishing marginal utility

• demand economics

• supply economics

As we use more of a product, we get less satisfaction from using each additional quantity.

• marginal utility

• diminishing marginal utility

• equilibrium

• price discrimination

Change in quantity demanded because of a change in price that alters consumers' real income.

• marginal utility

• diminishing marginal utility

• substitution effect

• income effect

The change in quantity demanded because of the change in a relative price of the product.

• price equilibrium

• diminishing marginal utility

• substitution effect

• income effect

When consumers make more or less money, this changes demand because of

• income effect

• consumer tastes

• substitution effect

• complements

Demand can increase or decrease based on what buyers prefer at that moment based on

• price equilibrium.

• consumer tastes.

• a shift to the left.

• a shift to the right.