Vocab Econ Chpt 4

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Anonymous
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Vocab Econ Chpt 4
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2010-01-29 10:29:04
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vocab Chpt 4
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Words and defs for chpt 4 econ
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  1. Demand
    The desire to own something and the ability to pay for it.
  2. Law of Demand
    Consumers buy more of a good when its price decreases and less when its price increases.
  3. Substitution Effect
    When Consumers react to an increase in a good's price by consuming less of that good and more of other goods.
  4. Income Effect
    The change in consumption resulting from a change in real income.
  5. Demand Schedule
    A table that lists the quantity of a good a person will buy at each different price.
  6. Market Demand Schedule
    Table that lists the quantity of a good all consumers in a market will buy at each different price.
  7. Demand Curve
    A graphic representation of a demand schedule.
  8. Ceteris Paribus
    Latin phrase that means "all other things held constant"
  9. Normal Good
    A good that consumers demand more of when their incomes increase.
  10. Inferior Good
    A good that consumers demand less of when their incomes increase.
  11. Complements
    2 goods that are bought and used together.
  12. Substitutes
    Goods used in place of one another.
  13. Elasticity of Demand
    A measure of how consumers react to a change in price.
  14. Inelastic
    Describes demand that is not very sensitive to a change in price
  15. Elastic
    Describes demand that is very sensitive to a change in price
  16. Unitary Elastic
    Demand whose elasticity is exactly equal to one
  17. Total Revenue
    total amount of money a firm receives by selling goods or services

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