Demand, Supply, and Prices Quiz 1

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

• demand

• law of demand

• market demand schedule

• demand curve

Consumers will buy more of a good when its price is lower and less when its price is higher

• demand

• law of demand

• market demand schedule

• demand curve

When a consumer reacts to a rise in the price of one good by consuming less of that good and ore a substitute good.

• demand curve

• income effect

• demand schedule

• substitution effect

The change in consumption that results in response to changes in price.

• demand

• income effect

• substitution effect

• market demand schedule

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

• demand

• law of demand

• demand curve

• demand schedule

A table that lists the quantities demanded of a good at various prices by all consumers in the market

• market demand schedule

• Demand

• law of demand

• demand curve

A graphic representation of a demand schedule

• demand schedule

• demand curve

• market demand schedule

• demand

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

• complements

• demographics

• ceteris paribus

• substitutes

A good that consumers demand more of when their incomes increase.

• substititutes

• inferior good

• normal good

• complements

A good that consumers demand less of when their income increases

• inferior good

• complements

• substitutes

• normal good