Consumer Willingness and Ability to Pay

Front

It refers to the willingness and ability of a consumer to pay for goods and services during a specific period of time.

Back

Demand

Front

It is the amount that the consumer wants to buy based on the given price.

Back

quantity demand

Front

It refers to the inverse relationship of price and quantity demanded of a good or service.

Back

Law of Demand

Front

When the price of a good or a service increases, the quantity demanded decreases.

Back

ceteris paribus

Front

When the price of a good or service increases, the consumer will reduce his consumption of this good or service as he pays more attention to his other needs.

Back

substitution effect

Front

When the price of a good or service increases, the value of the consumer's income decreases.

Back

income effect

Front

It is a table that shows quantity demanded or the amount that the consumer wants and can afford to buy at every given price of a good or service.

Back

demand schedule

Front

It is the aggregation of the demand of every individual household.

Back

market demand

Front

It is a graphic illustration of the demand schedule.

Back

demand curve

Front

What are the five principal factors that cause a shift of the demand curve?

Back

1. 1. Change in Income

2. 2. Change in the Price

3. 3. Change in Tastes

4. 4. Change in Expectations

   5. 5. Change in the Number of Buyers