Demand Vocabulary Review

Definition: graphically shows the data from a demand schedule

• market demand schedule

• demand curve

• law of demand

____ the willingness to buy a good or service and the ability to pay for it

• law of diminishing marginal utility

• compliment

• demand

Definition: When price increases, demand decreases. When price decreases, demand increases.

• law of demand

• direct relationship

• market demand

_____ is a listing of how much of an item an individual is willing to purchase at each price.

• inferior good

• market demand schedule

• demand schedule

____ a listing of how much of an item all consumers are willing to purchase at each price.

• market demand schedule

• demand schedule

• demand

____ graphically shows the data from a market demand schedule.

• demand graph

• market demand curve

• Productions Possibilities Curve

Definition: The marginal benefit of using each additional unit of a product during a given time period will decline.

• law of diminishing marginal utility

• law of diminishing opportunity cost

• marginal cost and marginal benefit

____ occurs when something prompts consumers to buy different amounts at every price

• direct relationship

• change in demand

• inferior good

Which type of good do consumers demand more of when income increases?

• inferior

• normal

• neutral

Which type of good do consumers demand less of when income increases?

• normal

• inferior

• neutral