Determinants of Demand
The amount of money people earn affects the amount they are willing and able to spend. This is called...?
Change in Consumer Income
The amount of a good or service that consumers are willing to buy is called..?
Demand
A _____ is a graphical representation of the demand schedule for a good, showing the quantity demanded at each price.
Demand Curve
Type of elasticity where a change in price causes a relatively larger change in quantity demanded.
Elastic
As the number of people in an area increases, the demand for goods generally increases. This is called..?
Population
What do we call the principle that states as the price of a good increases, the quantity demanded decreases, and as the price of a good decreases, the quantity demanded increases?
Law of Demand
What if people no longer like a good, what will happen with demand?
The demand will DECREASE
Type of elasticity where a change in price causes a relatively smaller change in quantity demanded.
Inelastic
Popularity, famous people, Advertising agencies (marketing) social media, medical journals etc. influences taste. This is called...?
Change in Consumer Tastes and Preferences.
There are two distinct reasons why a consumer buys less of a good after its price increases:
- The ______ effect
- The ______ effect.
Substitution and Income
A _______ is a table that relates the quantity demanded of a particular good to its price.
Demand Schedule
If people expect there to be a shortage of Twinkies they may stock up now, increasing the ______ for Twinkies causing the price to _______.
Demand & Increase
If you think prices will fall, you buy later. If you think prices will rise, you buy today.
Change in Consumer Expectations
The amount of a good that consumers are willing and able to purchase at a particular price is ______.
Quantity Demanded
What does shifting the demand curve to the right mean?
Increase in Demand
Example of Complementary Goods
Shoes + Socks
Pencil + Eraser
More so on..
When people buy one of these goods, they are likely to also buy the other. This is called...?
Complimentary Goods
The term used to describe a situation in which "all other things constant" is ______.
Ceteris Paribus
The Law of Demand is an ______ relationship.
Inverse
Name the two qualifications that must be met for a good or service to be in "demand"
What is want (desire), and ability to purchase (afford).