Vocabulary 1
The choice-making behaviors of BUYERS
Demand
Goods that are "jointly Consumed" with another good
Complementary goods
If the demand curve shifts to the left, what does this mean in terms of demand?
Decreased demand
what type of slope does the demand curve have? and why?
Negative. Because it deals with consumers and their actions towards the changes in price. For example, the lower the price, the more they can buy. The higher the price the less they can buy.
Curve that shows the quantities of a good or service that people are willing/able to buy at different prices
Demand Curve
Represents the choice-making behaviors of SELLERS
Supply
Changes in factors that are NOT price cause what in the demand curve
A shift
Would ribeye steaks and sirloin steaks be complementary or substitute goods?
Substitute
Any good for which there is a DIRECT relationship between changes in INCOME and its demand curve
Normal Good
All else remains the same
ceteris Paribus
Changes in price cause what in the demand curve
Movement along
Which one is an example of a normal good?
Steak or Burger?
Steak
Any good for which there is an INVERSE relationship between changes in INCOME and its demand curve
The summation of the individual demands schedules on a market
market demand
What would be an example of complementary goods
peanut butter and jelly, bacon and eggs, burger and fries, ect.
If there is an increase in demand, which way does the demand curve move?
Right
Goods that COMPETE with each other for consumer purchases
Substitute Goods
horizontal summation of all the quantities supplied at various prices that might prevail in the market
Market Supply
An increase in price causes the demand curve to move which way?
up
Which of the following would NOT cause a shift in the demand curve?
a. Tastes/Preferences
b. Number of buyers in the market
c. Income
d. Increase in prices
d. increase in prices