Chapter 4 Section 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 buy more of a good one it’s price decreases and less when its price increases
3
Q
Substitution effect
A
When consumers react to an increase in a good price by consuming less of that good and more of other goods
4
Q
Income affect
A
The change in consumption resulting from a change in real income
5
Q
Demand schedule
A
A table that lists the quantity of a good a person will buy each different price
6
Q
Market demand schedule
A
A table that lists the quantity of a good all consumers in the market will buy each different price
7
Q
demand curve
A
A graphic representation of a demand schedule
