What is Demand
what 2 factors need to be present in demand?
to want it and the ability to buy it
what are goods and services that can be used in place of each other?
substitution
what measures how drastically buyers will cut back or increase their demand for a good when the price rises or falls, respectively?
the elasticity of demand
a can of beans is what?
inferior good
Given an example of a location and time of year when the market size changes?
beach town--summer
ski lodge--winter
the law of demand states, that is the price goes up, demand goes _____________
down
What is an increase or decrease in the amount demanded because of change in price?
Change in Quantity Demanded
If you buy the same amount (just a little less) of a good after a large price increase→ relatively unresponsive to price changes?
inelastic demand
a tesla is what?
normal good
if a beach town ha d a total revenue of $200 in t-shirt sales in the winter, and 150 visitors come in the month of June, what can you predict would be the new total revenue for June?
$350
what takes place when a consumer reacts to a rise in the price of one good by consuming less of that good and more of a substitute good?
Substitution effect
what are goods that are used together, so a rise in demand for one increases the demand for the other?
Complements
If you buy much less of a good after small price increase?
elastic demand
ramen noodles are what?
inferior
Sea bright has a market size decrease in what months?
winter months
what describes how changes to consumers’ real income levels can affect their purchasing patterns?
Income effect
what goods that consumers demand more when their incomes increase?
Normal Goods
What is your product if your result from doing the elasticity of demand coefficient is 2?
elastic demand
a thrifted pair of designer jeans are what?
inferior
give an example of a national market size change?
increase in unemployment
what shows the quantities demanded at various prices by all consumers in the market?
market demand schedule
What states that the marginal benefit of using each additional unit of a product during a given period will decline?
Law of Diminishing Marginal Utility
what is unitary elastic?
If demand is exactly equal to 1
a new hard-cover textbook is what?
normal
When does the market size change for South?
summer & weekends