Econ chapter 4

  1. unit elastic
    a given change in price cuases a proportional change in quantity demanded
  2. inelastic
    a given change in price causes a relatively smaller change in the quantity demanded
  3. elastic
    given change in price causes a relatively larger change in quantity demanded
  4. demand elasticity
    extent to which a change in price causes a change in the quanitity demanded
  5. elasticity
    measure of responsiveness that tells us how a dependent variable responds to a change in an independent variable
  6. complements
    goods that are related to other goods
  7. substitutes
    products that are used in place of other products
  8. change in demand
    something that happens that causes the demand curve to shift
  9. substitution effect
    change in quantity demanded because of the change in the relative price of the product
  10. income effect
    the change in quantity demanded becasue of a change in price that alters consumers' real income
  11. change in quantity demanded
    a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price
  12. diminishing marginal utility
    states that the extra satisfaction we get from using additional quantities of the product beings to diminish
  13. marginal utility
    the extra usefullness or satisfaction a person gets from acquiring or using one more unit of a product
  14. market demand curve
    the demand curve that shows the quantities demanded by everyone who is interested in purchasing the product
  15. Law of Demand
    states that the quantity demanded of a good or service varies inversely with its price
  16. demand curve
    graph showing the quantity demanded at each and every price that might prevail in the market
  17. demand schedule
    listing that shows the various quantities demanded of a particular product at all prices that might prevail in the maket at a given time
  18. microeconomics
    area of economics that deals with behavior and decision making by small units
  19. demand
    desire, ability, and willingness to buy a product
Card Set
Econ chapter 4