Econ

What is demand?

• The desire to own something but does not have the ability to pay for it.

• When a consumer buys more of a good.

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

• When the price decreases and the consumer buys more of it.

What is the law of demand?

• Consumers buy more of a good when its price decreases and less when its price increases.

• Consumers buy less of a good when its price increases.

• When the price goes up more people want to buy it.

• Producers buy more of a good when its price decreases and less when its price increases.

What is the substitution effect?

• When the price of a good goes down, consumers buy less of that good and more of another good

• When the price of a good goes down, consumers buy more of that good and less of another good

• When the price of a good goes up, consumers buy more of that good and less of another good

• When the price of a good goes up, consumers buy less of that good and more of another good

What is the income effect?

• the change in income resulting when a price increases causes real consumption to decline

• the change in consumption resulting when a price increases causes real income to decline

• the change in consumption resulting when a price increases causes real income to increase

• the change in consumption resulting when a price decline causes real income to decline

What is demand schedule?

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

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

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

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

How do you create and read a demand curve?

• Graph of a demand schedule; reflects of rule demand

• Graph of a demand schedule; reflects of law demand

• Graph of a demand curve; reflects of law demand

• Graph of a schedule; reflects of law demand

What is center is paribus

• Used to qualify how demand would be changed if only prices are affected; "All other things held constant"

• Used to figure out how demand would be affected if only prices changed; "All other things held constant"

• Used to qualify how demand would be affected if only prices changed; "All other things held constant"

• Used to qualify how demand would be affected if only prices changed

What factors can cause a shift in demand? Explain each one.

• What factors other than price change equals income change; consumer taste such demographics/population/ consumer expectations

• What factors other than price change equals income change

• What factors other than income change equals price change; consumer taste such demographics/population/ consumer expectations

• consumer taste such demographics/population/ consumer expectations

What are complements

• Two goods that are bought but not used together

• A good that is bought.

• Two goods that are bought at separate times used together

• Two goods that are bought and used together

What are substitutes?

• Goods that are not used together.

• Goods that are used in place of one another

• Products that are used in place of one another

• Items that are used with one another