economics chapter 4 test
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13 terms
Terms | Definitions |
|---|---|
 marginal utility | the extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product |
| demand schedule | a listing that shows the various quantities demanded of a particular product at all prices |
| substitution effect | the change in quantity demanded because of the change in the relative price of the product |
| elasticity | the measure of responsiveness that tells how a dependent variable responds to a change in an independent variable |
| demand curve | shows the quantity demanded at each and every price that might prevail in the market |
| microeconomics | deals with behavior and decision making by small units such as individuals and firms |
| unit elastic | when a given change in price causes a proportional change in the quantity demanded |
| income effect | change in quantity demanded because of a change in price that alters consumers real income |
| demand elasticity | the extent to which a change in price causes a change in the quantity demanded |
| The Law of Demand | states that the quantity demanded of a good or service varies inversely with its price |
| inelastic | when prices causes small demand change |
| complements | related goods that increase the use of other goods |
| desire, ability, and willingness | three factors that determine the demand of the product |
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