Sa
"a motivating influence that causes someone to act"
What is an incentive?
"a consumer's desire to buy a product or service combined with the money and ability to actually pay for it"
What is demand?
When price goes up, people are willing to buy___
What is less?
When the price goes down, people are willing to buy ___
What is more?
When the quantity of an item goes down, the price does this
What is increase?
According to the Law of Demand, when the price of a good or service increases, this happens to its quantity demanded
What is decreases?
This type of demand occurs when a change in price causes a relatively larger change in quantity demanded
What is elastic demand?
This compares the direction of a price change to the direction of change in total revenue or total expenditures
What is an expenditures test?
states that the quantity demanded of a product varies inversely with its price
What is Law of Demand?
When a change in demand occurs, the entire demand curve shifts _____
What is left or right?
The only event that can cause a change in quantity demanded is a change in ___
What is price?
type of demand is when the price and change in revenue move in the same direction
What is inelastic demand?
the additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product
What is marginal utility?
This type of demand occurs when a change in price causes a proportional change in quantity demanded
What is unit demand?
When acceptable ____ are available for a product, demand becomes more elastic.
What are substitutes?
"a change in quantity demanded because of a change in price that makes consumers feel richer/poorer"
What is income effect?
a decrease in additional satisfaction or usefulness as additional units of a product are acquired
What is diminishing marginal utility?
This may cause a substitution effect
What is a shift in relative price?
type of demand does a change in price move in the opposite direction from the change in revenue
What is elastic demand?
Shows the quantity demanded at each and every possible price that might prevail in the market at a give time
What is demand curve?
With this type of demand is there no change in revenue, regardless of the price change
What is Unit demand?
To measure the elasticity of demand, compare percentages of these 2 things
What are change in price and change in quantity?
This type of demand occurs when a change in price causes a relatively smaller change in quantity demanded
What is inelastic demand?
the extent to which a change in price causes a change in the quantity demanded
What is demand elasticity?
This causes people to demand either more or less of a good
What are consumer expectations?