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Flashcards in quiz 2 Deck (21)
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1
Q

states that the marginal benefit of using each additional unit of a product during a given period will decline

A

the law of diminishing marginal utility

2
Q

the satisfaction gained from the use of a good or service

A

utility

3
Q

economists have identified 2 patterns of behavior as causes:

A

the income effect and the substitution effect

4
Q

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

A

the income effect

5
Q

the pattern of behavior that occur when consumers react to a change in the price of a good or service by a substitute product

A

the substitution effect

6
Q

a change in the amount of a product that consumers will buy because of a change in price is called a change in the ____

A

quantity demanded

7
Q

each change in the ________ is shown by a new point on the demand curve

A

quantity demanded

8
Q

change in demand is also called a _______ because it actually shifts the position of the demand curve

A

shift in demand

9
Q

6 factors can cause a change in demand:

A

income, market size, consumer tastes, consumer expectations, substitute goods, and complementary goods

10
Q

changes in ____ also affect market demand curves

A

income

11
Q

when the income of consumers in a market rises or falls, the ________ in the market also usually rises or falls

A

total demand

12
Q

goods that consumers demand more of when their income rises

A

normal goods

13
Q

goods that consumers demand less of when their income rises

A

inferior goods

14
Q

inferior goods can be :

A

used books and generic food products

15
Q

has a strong influence on consumer tastes

A

advertising

16
Q

your expectations for the future can affect your _____ today

A

buying habits

17
Q

goods and services that can be used in place of other goods and services to satisfy wants are called _____

A

substitutes

18
Q

demand for the substitute while demand for the original item ____

A

decreases

19
Q

can be used in place of each other

A

substitutes

20
Q

when the use of one product increases the use of another product these are called

A

complements

21
Q

in contrast to substitutes, complements are ____

A

goods and services that work in tandem with each other