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demand chapter three vocab
chapter 3 vocab econ
16
Economics
12th Grade
02/19/2015

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Term
demand
Definition
the amount of a good or service that a consumer is willing and able to buy at various possible prices during a given time point
Term
quantity demanded
Definition
is a slightly different concept that describes the amount of a good or service that a consumer is willing and able to buy at each particular price during a given time period
Term
law of demand
Definition
which states that an increase in a goods price causes a decrease in the quantity demanded and that a decrease in the price causes a increase in quantity demanded
Term
purchasing power
Definition
the amount of money or income, that people have available to spent on goods and services
Term
income effect
Definition
any increase or decrease in consumers purchasing power caused by a change in price
Term
substitution effect
Definition
describes the tendency of consumers to substitute a similar, low-priced product for another product that is relativity more expensive
Term
diminishing marginal utility
Definition
the marginal or additional utility of each unit consumed diminishes, or lessens, with each additional unit
Term
demand schedule
Definition
this lists that quantity of goods that consumser are willing and able to buy at a series of possible prices
Term
demand curve
Definition
plots this info on a graph
Term
determinants of demand
Definition
curve that means that a different quantity of cars stereos in demanded at each and every price
Term
substitute goods
Definition
goods that can be used to replace the purchase of similar goods when prices rise
Term
complementary goods
Definition
goods that are commonly used with other goods
Term
elastic demand
Definition
exists when a small change in goods price causes a major, opposite change in the quantity demanded
Term
elasticity of demand
Definition
is the degree to which changes in goods price affect that quantity demanded by consumers
Term
inelastic demand
Definition
exists when a change in a goods price has little impact on the quantity demanded.
Term
total revenue
Definition
sometimes called total receipts refers to total income that a business receives from selling its products
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