Chapter 4- Demand

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Quantity demanded
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Terms in this set (16)
SubstitutesIncrease in PRICE in product A causes increase QUANTITY in product B. ex. Cake vs. Pies Cake price increases, buyers get fewer cakes and demand(Q) for pies increases.ComplementsIncrease in price of one causes a FALL in demand for the other. ex Bread goes with butter, if butter goes up you wont buy bread. Same goes for pancakes and syrup.Tasteincreases as taste of item satisfies.ExpectationsExpectations affect consumers buying DESICIONS ex If you expect a raise, you will spend more If you expect to get fired, you will spend lessSummaryPrice # of buyers income Price of related goods taste expectationsPriceIt does not shift the entire curve it goes along the curve. Price goes up so quantity goes down. Price goes down so quantity goes up.