1. •is how much you are willing to purchase at various prices during a specified time period. 
    Your demand for any good or service
  2. If the price is right,
    you will make an exchange
  3. exchange—you will give up funds in exchange for...
    the good or service that somebody is willing to sell you
  4. At higher prices...
    consumers tend to purchase less
  5. At lower prices, consumers tend to purchase...
  6. Law of Demand....When price changes....
    It affects your ability to buy goods
  7. other law behind demand ...
    has to do with your desire to substitute among goods
  8. •If the price of a good or service that you normally buy goes up, your ability to buy the same quantities of everything you are buying has been  
  9. When your real income has fallen, you normally buy less of .
    the higher-priced good
  10. When the price of one item goes up, and the prices of other items in your budget do not, you generally attempt to substitute away from the more expensive item in favor of the less expensive item.  What is this called?
    substitution effect.
  11. its price in terms of other goods and services. 
    relative price
  12. The price that you pay in dollars and cents today for any good or service is called
    money price, or nominal price.
  13. Image Upload 1
    Price and Quantity
  14. Image Upload 2
    demand curve
  15. •To go from an individual demand curve to a demand curve for the entire market, you have to
    add together all the demands of individual buyers.
  16. •When we refer to the entire market demand, we are looking at all
    actual and potential buyers of a particular good or service.
  17.  the specific quantity consumers are willing to buy at a specific price, represented by a single point on a demand curve. 
    •A quantity demanded
  18. When price changes, quantity demandedchanges according to the law of demand, and there will be a
    movement from one point to another pointalong the same demand curve.
  19. __________ refers to a schedule of planned ratesof purchase
  20. depends on many non-price determinants. 
  21. Whenever there is a change in a non-price determinant...
     there will be a change in demand
  22. •Many factors...
    determine the demand for different goods and services.
  23. •Any change in the most important determinants of demand will....
    change, or shift, the demand curve.
  24. tastes or preferences, population,income, and prices of related goods.
    Determinants of Demand
  25. Tastes or preferences—
    any time tastes or preferences for a good or service change,the demand curve will change,
  26. 1.Population—The size of the market is important.  As population increases...
     the demand for most goods and services increases.
  27. 1.Income—Typically, as incomes rise...
     the demand for most goods and services increases.
  28. Prices of Related Goods—
    When the price of a substitute rises, the demand for the othergood or service rises, too
  29. goods are used together with other goods. They are called
  30. . If the price of a complement goes up....
    the demand for the other good or service decrease
Card Set
civics 3rd nine weeks