The Demand Curve
This is the relation showing the quantities of a good or service that consumers are willing and able to buy at various prices, with all other things held constant.
What is DEMAND?
This measures how responsive quantity demanded is to a price change.
What is ELASTICITY OF DEMAND?
These are a consumers likes and dislikes.
What are fads/preferences?
A price change of...let's just say pizza...from $12 to $9 that causes the demand for pizza to increase from 14 million pizzas per week to 20 million pizzas per week leads to an elasticity of this. (round to the nearest hundredths)
What is 1.71?
A decrease in your income leads to this for a normal good graph?
What is a SHIFT OF A DEMAND CURVE TO THE LEFT?
This is defined as "the quantity of a good demanded per period related inversely to its price, with all other things held constant."
What is THE LAW OF DEMAND?
When elasticity is exactly 1.0, the elasticity of a product is said to be this.
What is UNIT ELASTIC?
This is caused by a change in price.
What is a MOVEMENT ALONG A DEMAND CURVE?
A price change of milk from $3.50 to $5.00 that causes a demand decrease from 20 to 16 shows that the elasticity of milk is this. (round to the nearest hundredths)
What is 0.47?
A decrease in the price of Pepsi will lead to this in the demand for Coke.
What is a SHIFT IN THE DEMAND CURVE TO THE LEFT?
This is the amount demanded at a particular price.
What is QUANTITY DEMANDED?
This is a determinant of demand. As there are more of product Y it makes product Y elastic. As there are fewer of product Z it makes product Z inelastic.
What are many or few SUBSTITUTES?
This is an increase or decrease of demand resulting from a change in one of the determinants of demand other than the price of a good.
What is a SHIFT OF A DEMAND CURVE?
A price change of running shoes from $70 to $60 that leads to a change in demand from 40 to 50 consumers shows that the elasticity for running shoes is this. (round to the nearest hundredths)
What is 1.75?
An increase in the number of babies in the population will cause this to the demand for diapers.
What is a SHIFT IN THE DEMAND CURVE TO THE RIGHT?
This is the change in total utility resulting from a one-unit change in consumption of a good.
What is MARGINAL UTILITY?
The elasticity of demand is greater in this because consumers have more time to adjust. Such as airline tickets. It is a period of time.
What is THE LONG RUN?
An increase in the price of milk will cause a decrease in the demand for cookies because milk and cookies are this?
What are COMPLEMENTS?
A price change of running shoes from $60 to $70 that leads to a change in demand from 50 to 40 consumers shows that the elasticity for running shoes is this. (round to the nearest hundredths)
What is 1.2?
Expecting the price of gas to decrease tomorrow will cause this to the demand for gas today.
What is a SHIFT IN THE DEMAND CURVE TO THE LEFT?
This is the sum of the individual demand of all consumers in a market.
What is MARKET DEMAND?
Price multiplied by the quantity demanded at that price is this.
What is TOTAL REVENUE?
An increase in your income will cause an increase in the demand for this type of good.
What are NORMAL GOODS?
A price decrease from $100 to $50 that leads to the a demand increase from 50 to 75 consumes shows a price elasticity of this. (round to the nearest hundredths)
What is 1.0?
A discovery that the combination of cheese and tomato sauce promotes overall health would lead to this in the demand for pizza.
What is a SHIFT IN THE DEMAND CURVE TO THE RIGHT?