Gov Ch 4 Vocabulario
Terms
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- demand schedule
- a table that lists the quantity of a good a person will buy at each different price
- income effect
- the change in consumption resulting from a change in real income
- ceteris paribus
- means all other things held constant
- law of demand
- consumers buy more of a good when its price decreases and less when its price increases
- market demand schedule
- a table that lists the quanitity of a good all consumers in a market will buy at each different price
- demand curve
- a graphic representation of a demand schedule
- unitary elastic
- describes demand whose elasticity is exactly equal to one
- elasticity of demand
- a measure of how consumers react to a change in price
- total revenue
- the total amount of money a firm receives by selling goods or services
- inferior good
- a good that consumers demand less of when their incomes increase
- demand
- the desire to own something and the ability to pay for it
- normal good
- a good that consumers demand more of when their incomes increase
- inelastic
- describes demand that is not very sensitive to a change in price
- complements
- two goods that are bought and used together
- substitution effect
- when consumers react to an increase in a good's price by consuming less of that good and more of other goods
- elastic
- describes demand that is very sensitive to a change in price
- substitutes
- goods used in place of one another