Chapter 4 Demand Terms

Goods that Consumers demand more of when income increases

• Normal Goods

• Inferior Goods

• Substitutes

• Complements

The assumption that nothing other than price will change

• Ceteris paribus

• Utility

• Income effect

• Elastic

Goods used in place of one another

• Substitute Goods

• Normal Goods

• Complementary Goods

• Inferior Goods

Goods for which demand falls as income increases

• Normal Goods

• Substitute Goods

• Complementary Goods

• Inferior Goods

Goods that are used together

• Normal Goods

• Inferior Goods

• Substitute Goods

• Complementary Goods

A list of the quantity of a good that a person will buy at different prices

• Demand Schedule

• Demand Curve

• Law of Demand

• Substitution effect

A change in consumption that results when a price increase causes real income to decline

• Income effect

• Substitution Effective

• Law of Demand

• Demand Curve

Concept that consumers will buy more of a good when its price is lower and less when its price is higher

• Law of Demand

• Substitution Effect

• Income Effect

• Demand Schedule

A graph showing the quantity demanded at any given price

• Demand Curve

• Demand Schedule

• Law of Demand

• Substitution Effect

The satisfaction from eating the next cookie is less than the current cookie

• Diminishing Marginal Utility

• Elasticity of Demand

• Elastic Demand

• Total Revenue