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Description
Flashcards by hayley fuentes, updated more than 1 year ago
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Created by hayley fuentes
over 7 years ago
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| Question | Answer |
| Demand | The number of units a consumer is willing to buy at various prices |
| The Law of Demand | States that an increase in price will lead to a decrease in demand and a decrease in price will lead to an increase in demand |
| Consumer Surplus | The benefit to the consumer due to the difference in what they payed for the good and the amount they were willing to pay rather than to go without the good. |
| Individual Demand | Studies the quantities of a good an individual consumer is willing to buy at each price. |
| Market/ Aggregate Demand | Shows the different quantities of a good that all consumers in the market are willing to buy at each price. It is derived by adding all individual demands for the good. |
| Demand Schedule | A table that shows different quantities for a good at various different prices |
| Individual Demand Schedule | A table that lists the different quantities of a good an individual consumer is willing to buy at each prices |
| Market/ Aggregate Demand Schedule | A list of the different quantities all consumers in the market are willing to buy at each price. It is derived by adding all individual demand schedules together. |
| A Shift in the Demand Curve | Is caused by a non-price determent of demand |
| Movement Along the Demand Curve | Is caused by change in the price of a good itself |
| Complimentary Goods | Goods that are used jointly, the use of one required the use of the other. Ex: bread and butter. |
| Substitute Goods | Goods that satisfy the same needs therefore can be seen as alternatives to each other. Ex: Milk |
| Demand Formula | Dx=f (Px, Pog, Y, E, T, U, G) |
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