Term
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Definition
| The various amounts of Product that consumers are willing and able to purchase |
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Term
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Definition
| As price falls the quantity demand rises, as price rises the quantity demand falls |
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Term
| Diminishing Marginal Utility |
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Definition
| successive units of a particular produce yield less and less marginal utility (the more you have of a particular product the less it satisfies you) |
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Term
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Definition
| A LOWER price increases purchasing power of a buyers money income, allowing the buyer to purchase more |
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Term
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Definition
| If the cost goes down and has a better deal you might purchase that item over the usual item "substituting" the better deal item |
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Term
| Determinants of Demand, or Demand Shifters |
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Definition
| Demand other than price and Quantity such as preferences, consumers income,consumer expectations |
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Term
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Definition
| Number of Buyers, Income, R\Prices of related Goods, complements,unrelated goods, consumer expectation |
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Term
| Superior goods or normal Goods |
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Definition
| Products that demand varies with money income |
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Term
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Definition
| a good that can be used in the place of another good. McDonalds instead of ruby Tuesdays would be a substitute |
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Term
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Definition
| Good that is used together with another good, snowboard and lift ticket, computer and software |
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Term
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Definition
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Term
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Definition
| when quantity supply exceeds quantity demand, surpluses drive prices down |
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Term
| 3 rationales for the law of demand |
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Definition
People ordinarily do buy more of a product at a low price
Each buyer of a product will derive less satisfaction from each successive unit of product consumed (diminishing marginal utility)
The income effect/ substitution effect more income = buying more product, less income = buying substitute product |
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Term
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Definition
| suggest that lower price buyers have the incentive to substitute what it now a less expensive product for a similar product that was more expensive |
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Term
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Definition
| factors that affect purchases |
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Term
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Definition
| consumers taste, the number of buyers in market, consumers income, the prices of related goods, consumer expectations |
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Term
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Definition
| a favorable change in consumer preferences for a product, a change that makes a product more desirable, means that more of it will be demanded at each price |
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Term
| how does the number of buyers affect the demand |
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Definition
| an increase in the number of buyers in a market is likely to increase product demand |
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Term
| how does income affect demand |
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Definition
| rise in income increase in demand |
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Term
| 2 parts of price related goods and effects |
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Definition
| Subsitute good complementary good |
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Term
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Definition
| amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period |
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Term
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Definition
| as price rises the quantity supplied rises as price falls the supply falls |
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Term
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Definition
| resources, technology, taxes and subsidies, prices of other goods, producer expectations, number of sellers in the market |
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Term
| Equilibrium price and quality |
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Definition
| is the price where the intentions of buyers and sellers match |
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Term
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Definition
| quantity demanded would exceed quantity supplied |
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Term
| Rationing Function of prices |
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Definition
| the ability of the competitive forces of supply and demand to establish a price at which selling and buying decisions are consistent is called the rationing function of prices |
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