Unit 3 Demand

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Terms in this set (...)

Demand
Consumer willingness and ability to buy products
quantity demanded
the amount of a good that buyers are willing and able to purchase
quality demanded states
as price increases, quantity demanded decreases, and that as price decreases, quantity demanded increases
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demand schedule
a table that lists the quantity of a good a person will buy at each different price
Demand curve
a graph of the relationship between the price of a good and the quantity demanded
quantity demanded deals with
refers to price
demand deals with
anything but price
law of demand
consumers will buy more of a good when its price is lower and less when its price is higher
substitution effect
as prices increase, consumers will replace more expensive items with cheaper ones.
income effect
as prices change, consumers will change how much they buy given their income.