Week 3 Vocab Flashcard

Front

Demand

Back

The desire to own something and the ability to pay for it

Front

Quantity Demanded

Back

The total amount of goods or services that consumers are willing and able to purchase at a given price in a given time period.

Front

Explain the difference between Demand Schedule and Demand Curve.

Back

A Demand Schedule is a table showing the quantity demanded at different prices, while a Demand Curve is a graph showing the same relationship.

Front

The Law Of Demand (Pencil Theory) states that:

Back

as the price of a good increases, the quantity demanded decreases, ceteris paribus.

Front

Difference between Change in Demand and Change in Quantity Demanded

Back

Change in Demand refers to a shift in the entire demand curve, while Change in Quantity Demanded refers to a movement along the demand curve due to a change in price.

Front

What are Normal Goods vs Inferior Goods?

Back

Normal goods are those whose demand increases as consumer income rises, whereas inferior goods are those whose demand decreases as consumer income rises.

Front

What are Substitutions?

Back

Goods that can be used in place of another good

Front

Complementary goods are:

Back

Goods that are used together

Front

WTP (Willing to Pay)

Back

The maximum amount a consumer is willing to pay for a good or service.

Front

The Law of Diminishing Marginal Utility states that as a person consumes more units of a good, the additional satisfaction gained from consuming each additional unit will eventually decrease. Which of the following best describes this concept?

Back

The satisfaction from consuming additional units decreases.