Economics Unit 3 Test Vocab Review

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

• substitution effect
• demand
• demand schedule
• income effect

The change in consumption resulting from a change in real income.

• substitution effect
• demand
• demand schedule
• income effect

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

• substitution effect
• demand
• demand schedule
• income effect

A table that lists the quantity of a good a person will buy at each different price.

• substitution effect
• demand
• demand schedule
• income effect

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

• ceteris parabis
• normal good
• inferior good
• complements

Two goods that are bought and used together.

• ceteris parabis
• normal good
• inferior good
• complements

A good that consumer's demand less of when their income increase.

• ceteris parabis
• normal good
• inferior good
• complements

A good that consumers demand more of when their income increases.

• ceteris parabis
• normal good
• inferior good
• complements

A factor that can change.

• supply
• variable
• elasticity of supply
• total cost

Fixed costs added to variable costs.

• supply
• variable
• elasticity of supply
• total cost