The Basics
Elasticity
Goods
Demand Determinants
100
Demand
What is the desire to own something and the ability to pay for it.
100

Primary determinant of elasticity

What is substitutes

100
Normal Goods
What is a good that consumers demand more of when their incomes increase.
100
Advertising Creates Trends
What is advertising can decrease demand. ex: beanie babies
200
Law Of Demand
What is the economic law that states that consumers buy more of a good when its price decreases and less when its prices increases.
200
Elastic
What is demand that is very sensitive to a change in price.
200
Inferior Good
What is a good that consumers demand less of when their incomes increase.
200
Income
What is an increase for demand for normal goods, decrease for inferior goods.
300
Demand Curve
What is a graphic representation of a demand schedule.
300
Inelastic
What is demand that is not very sensitive to change in price.
300
Steak
What is an example of a normal good
300
Expectations
What is when consumers think prices are going to rise, demand rises; consumers think prices are going to fall, demand falls.
400
Demand Schedule
What is a table that lists the quantity of a good a person will buy at each different price.
400
Luxury Items, Expensive Cars, Fancy Foods
What is examples of Elastic items.
400
Substitute Good
What is goods used in the place of each other
400
Related Goods
What is a substitute good and complementary good
500
Elasticity Of Demand
What is a measure of how consumers react to a change in price.
500
Milk, Gasoline, Drugs
What is examples of Inelastic items.
500
Complement Good
What is two goods that are bought and used together
500
Population/Demographics
What is changes in size of population affecting demand for products.
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