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Vocab Econ Chpt 4
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Demand
The desire to
own
something and the
ability to pay
for it.
Law of Demand
Consumers buy more of a good when its price decreases and less when its price increases.
Substitution Effect
When Consumers react to an increase in a good's price by consuming less of that good and more of other goods.
Income Effect
The change in consumption resulting from a change in real income.
Demand Schedule
A table that lists the quantity of a good a person will buy at each different price.
Market Demand Schedule
Table that lists the quantity of a good all consumers in a market will buy at each different price.
Demand Curve
A graphic representation of a demand schedule.
Ceteris Paribus
Latin phrase that means "all other things held constant"
Normal Good
A good that consumers demand more of when their incomes increase.
Inferior Good
A good that consumers demand less of when their incomes increase.
Complements
2 goods that are bought and used together.
Substitutes
Goods used in place of one another.
Elasticity of Demand
A measure of how consumers react to a change in price.
Inelastic
Describes demand that is not very sensitive to a change in price
Elastic
Describes demand that is very sensitive to a change in price
Unitary Elastic
Demand whose elasticity is exactly equal to one
Total Revenue
total amount of money a firm receives by selling goods or services
Author
Anonymous
ID
5555
Card Set
Vocab Econ Chpt 4
Description
Words and defs for chpt 4 econ
Updated
2010-01-29T15:29:04Z
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