3.1 Flashcards
(7 cards)
1
Q
demand
A
The desire to own something and the ability to pay for it
2
Q
law of demand
A
Consumers will buy more of a good when the price is lower and less when the price is higher
3
Q
substitution efect
A
when consumers react to an increase in price by consuming less of that good and more of a substitute
4
Q
income effect
A
The change in consumption that results when a price increase causes real income to decline
5
Q
demand schedule
A
A table that lists the quantity of a good a person will buy at various prices in the market
6
Q
market demand schedule
A
A table that lists the quantity of goods all consumers in a market will buy at each different price
7
Q
demand curve
A
a graphic representation of a demand schedule
