Ch. 4

Question 0

Law of demand

Answer 0

A good’s price is low consumers buy it more than when the good’s price is high consumers wont buy as much

Question 1

Demand

Answer 1

Desire to own something and being able to pay for it

Question 2

Substitution effect

Answer 2

Consuming less of that good and more of a substitute good

Question 3

Income effect

Answer 3

Change in consumption when a price increase causes income to decline

Question 4

Demand schedule

Answer 4

Lists the goods a person buys at the market price

Question 5

Market demand schedule

Answer 5

Lists the goods all consumers buy at various prices

Question 6

Demand curve

Answer 6

Graphic representation of a demand schedule