states that the marginal benefit of using each additional unit of a product during a given period will decline
the law of diminishing marginal utility
the satisfaction gained from the use of a good or service
utility
economists have identified 2 patterns of behavior as causes:
the income effect and the substitution effect
the term used for a change in the amount of a product that a consumer will buy because purchasing power of his/her income changes
the income effect
the pattern of behavior that occur when consumers react to a change in the price of a good or service by a substitute product
the substitution effect
a change in the amount of a product that consumers will buy because of a change in price is called a change in the ____
quantity demanded
each change in the ________ is shown by a new point on the demand curve
quantity demanded
change in demand is also called a _______ because it actually shifts the position of the demand curve
shift in demand
6 factors can cause a change in demand:
income, market size, consumer tastes, consumer expectations, substitute goods, and complementary goods
changes in ____ also affect market demand curves
income
when the income of consumers in a market rises or falls, the ________ in the market also usually rises or falls
total demand
goods that consumers demand more of when their income rises
normal goods
goods that consumers demand less of when their income rises
inferior goods
inferior goods can be :
used books and generic food products
has a strong influence on consumer tastes
advertising
your expectations for the future can affect your _____ today
buying habits
goods and services that can be used in place of other goods and services to satisfy wants are called _____
substitutes
demand for the substitute while demand for the original item ____
decreases
can be used in place of each other
substitutes
when the use of one product increases the use of another product these are called
complements
in contrast to substitutes, complements are ____
goods and services that work in tandem with each other