Set: Economics Ch. 4

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All 17 Terms

Term Definition
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 quantity of a good a person will buy at each different price
market demand schedule a 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 two 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 describes demand whose elasticity is exactly equal to 1
total revenue the total amount of money a firm receives by selling goods or services

Set Information

Terms 17
Creator thatwickedjumper
Created February 13, 2008
Groups None
Tag economics
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Most Missed Words

  1. elasticity of demand → a measure of how consumers react to a change in price - 4 misses
  2. demand schedule → a table that lists quantity of a good a person will buy at each different price - 2 misses
  3. normal good → a good that consumers demand more of when their incomes increase - 2 misses
  4. unitary elastic → describes demand whose elasticity is exactly equal to 1 - 2 misses
  5. market demand schedule → a table that lists the quantity of a good all consumers in a market will buy at each different price - 1 miss
  6. demand curve → a graphic representation of a demand schedule - 1 miss
  7. inferior good → a good that consumers demand less of when their incomes increase - 1 miss