demand
What consumers are willing and able to buy at every price level
quantity demanded
The amount of a good or service buyers are willing and able to buy at one price.
law of demand
The law that states that as the price of any good or service increases, the quantity of that good or service demanded will fall and vice versa.
income effect
The change in quantity demanded as a result of a change in a consumer's real income when prices increases
substitution effect
The change in quantity demanded when the price of one good increases relative to the price of another good
quantity
Price changes the______________demanded of any item
low
If price is high, quantity demanded is_________.
high
If price is low, quantity demanded is__________.
more
quantity demanded (QD) has increased when people purchase____________of a product
whole curve
Demand (D) is the______________�overall demand for a good or service at all prices
purchased
Quantity demanded, is a specific point on the curve, showing how much will be________________at a specific price
demanded
when price changes, only the quantity________________ changes as a result.
left
A decrease in demand would result in the curve shifting to the___________.
increase
A shift to the right indicates an________________in demand
TRIBE
The acronym_______________can help you remember five different factors that can cause a shift in demand
Tastes and preferences
Related goods and services
Income
Buyers, number of
Expectations of price
TRIBE stands for:
complements, substitutes
Related goods are called_______________and_________.
another good
Complements are goods whose demand is dependent upon the change in price of_____________. If the price of tennis shoes decreases, the demand for shoe laces increases.
increase
The example above would demonstrate a substitute good. When the price of one good increases, the demand for a substitute good such as the sandals will____________.
rises, normal (superior) goods
As income____________, consumers will buy more____________________
inferior
As income falls, consumers will buy more_____________goods.
income effect
If the price of a good is lowered�let's say the price of brownies is lowered from 50 cents to 25 cents�he might buy another brownie because he can buy more brownies with his limited income. This is called the_____________________
substitution effect.
if the price of brownies increases from 50 cents to $1, Jim will substitute the less expensive cookies to increase his purchasing power. This is called the__________________.