demand correct answers the desire to own something and the ability to pay for it
law of demand correct answers price goes up, demand goes down; price goes down, demand goes up
substitution effect correct answers when consumers react to an increase in a good's price by consuming less of that g...
Economics Unit 2(Completely solved)
demand correct answers the desire to own something and the ability to pay for it
law of demand correct answers price goes up, demand goes down; price goes down, demand goes up
substitution effect correct answers when consumers react to an increase in a good's price by consuming
less of that good and more of other goods
income effect correct answers change in consumption resulting from a change in real income
demand schedule correct answers a table that lists the quantity of a good a person will buy at each
different price
market demand schedule correct answers a table that lists the quantity of a good all consumers in a market
will buy at each different price
demand curve correct answers a graphic representation of a demand schedule
ceteris paribus correct answers a Latin phrase that means "all other things held constant"
normal good correct answers a good that consumers demand more of when their incomes increase
inferior good correct answers a good that consumers demand less of when their incomes increase
complements correct answers two goods that are bought and used together
substitute correct answers goods used in place of one another
elasticity of demand correct answers a measure of how consumers react to a change in price
inelastic correct answers describes demand that is not very sensitive to a change in price
, elastic correct answers describes demand that is very sensitive to a change in price
unitary elastic correct answers describes demand whose elasticity is exactly equal to 1
factors affecting elasticity correct answers availability of substitutes, relative importance, necessities
versus luxuries, change over time
total revenue correct answers the total amount of money a firm receives by selling goods or services;
determined by the price of goods and the quantity sold
total revenue and elastic demand correct answers raising the price of a good will reduce the firm's total
revenue, decreasing the price increases the firm's total revenue
total revenue and inelastic demand correct answers raising the price of a good will increase the firm's total
revenue, decreasing the price will decrease the total revenue
supply correct answers the amount of goods available
law of supply correct answers supply goes up as price goes up, supply goes down as price goes down
quantity supplied correct answers the amount a supplier is wiling and able to supply at a certain price
supply schedule correct answers a chart that lists how much a good a supplier will offer at different prices
variable correct answers a factor that can change
market supply schedule correct answers a chart that lists how much of a good all suppliers will offer at
different prices
supply curve correct answers a graph of the quantity supplied of a good at different prices
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