ECON_Chapter 4: Demand Exam

The desire to have some good or service and the ability to pay for it.

States that when the price of a good or service falls consumers buy more of it. As the price of a good or service increases consumers usually by last of it (inverse relationship).

A table that shows how much of a good or service a individual consumer is willing and able to buy at each price in a market.

shows how much of a good or service all consumers are willing and able to buy at each price in a market.

A graph that shows how much of a good or service and individual will buy at each price.

shows the data found in the market demand schedule, all consumers or the market as a whole.

States that the marginal benefit from using each additional unit of a good or service during a given time tends to decline as each is used.

The term used for a change in the amount of a product that eight consumer will buy because the purchasing power of his or her income changes.

The pattern of behavior that occurs when consumers react to a change in the price or they good or service by buying a substitute product.

change in the amount of a product that consumers will buy because of a change in price. Each is shown by a new point on the demand curve.

occurs when a change in the marketplace such as a high-unemployment prompts consumers to buy different amounts of a good or service at each price. Change in demand is also called a shift in demand because actually shift the position of the demand curve.

goods that consumers demand more of when their incomes rise.

good for consumers demand less of one their incomes rise.

goods and services that can be used in place of other goods and services to satisfy consumer wants.

when the use of one product increases the use of another product.