Chapter 4 Demand

The change in consumption that results when a price increase causes spending ability to decline

• Demand

• Law of Demand

• Substitution Effect

• Real Income Effect

• Demand Curve

Consumers will buy more of a good when its price is lowered and less when price is high

• Demand

• Law of Demand

• Substitution Effect

• Real Income Effect

• Demand Curve

When consumers react to an increase in a good's price by consuming less of that good and more of an alternative good

• Demand

• Law of Demand

• Substitution Effect

• Real Income Effect

• Demand Curve

a graphic representation of quantity of a good at every price

• Demand

• Law of Demand

• Substitution Effect

• Real Income Effect

• Demand Curve

The desire to own something and the ability to pay for it

• Demand

• Law of Demand

• Substitution Effect

• Demand Schedule

• Demand Curve

A table that lists the quantity of a good a person will buy at various prices in a market

• Demand

• Law of Demand

• Substitution Effect

• Demand Schedule

• Demand Curve

A Latin phrase that means "all other things held constant"

• Ceteris Paribus

• Normal Good

• Inferior Good

• Demographics

• Complements

A good that consumers demand less of when income increases

• Ceteris Paribus

• Normal Good

• Inferior Good

• Demographics

• Complements

Two goods that are bought and used together

• Ceteris Paribus

• Normal Good

• Inferior Good

• Demographics

• Complements

Two goods that are bought and used together

• Substitutes

• Normal Good

• Inferior Good

• Demographics

• Complements