Law of Demand
This is the economic law that states consumers buy more of a good when its price falls and less when its price rises.
What is the Law of Demand?
A table that lists the quantity of a good a person will buy at different prices.
What is a demand schedule?
When consumers think the price of a product will rise/fall in the future, demand is affected.
What is consumer expectations?
Goods for which demand increases when income increases.
What are normal goods?
More than 1; equal to 1; less than 1.
This concept describes moving up or down an existing demand curve due to a change in price.
What is a change in quantity demanded?
A graph showing the relationship between price and quantity demanded.
What is a demand curve?
A rise in the number of buyers in the market impacts demand in some way.
What is Population?
Goods for which demand decreases when income increases.
What are inferior goods?
This shows inelasticity on a supply/demand graph.
What is more vertically sloped demand curve?
This principle explains why a rise in the price of pizza leads consumers to buy more cheeseburgers instead.
What is the substitution effect?
When many individual demand schedules are combined into one larger schedule.
What is a market demand schedule?
Age, gender, race, income, and lifestyle are all part of this factor of demand.
What are demographics?
When the price of Pepsi rises, demand for Coke increases because they are this type of related good.
What are substitutes?
The elasticity of Gasoline
What is inelastic.
This explains why when the price of gas goes up, people feel poorer and reduce overall spending.
What is the income effect?
A leftward shift of the demand curve represents this.
What is a decrease in demand?
If the price of butter rises, demand for bread might fall.
What are complimentary goods?
Peanut butter and jelly are a classic example of these related goods.
What are complements?
This is the formula used to find the percent change in either quantity or price.
This phrase means “all other factors held constant” so that only price affects quantity demanded.
What is ceteris paribus?
A movement along the curve is caused by this single factor.
What is price?
Fidget spinners came and went; this factor of demand explains why.
What is consumer tastes and preferences?
If Subway raises the price of its sandwiches due to a wheat shortage, demand for chips and drinks sold with the meal changes in this way.
What is decreasing demand for complements?
If a woodchuck could chuck wood?
What is how much wood could a wood chuck chuck?