Term
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Definition
| price of a product, income, wealth, price of other products, tastes, expectations |
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Term
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Definition
| As Prices go up, Quantity of demand goes down |
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Term
| Why do demand curves slope downward? |
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Definition
| Constrained by limited income |
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Term
| Diminishing Marginal Utility (DMU) |
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Definition
| Each addiional unit of consumption is worth less |
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Term
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Definition
| Earnings isn a given time period |
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Term
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Definition
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Term
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Definition
| demand goes up if income/wealth goes up |
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Term
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Definition
| demand goes down if income/wealth goes up |
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Term
| What happens to the price of Substitute goods |
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Definition
| When th price of one good goes up, the demand for the other good goes up |
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Term
| What happens to the price of complementary goods |
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Definition
| When the price of one good goes up, the demand for the other good goes down. |
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Term
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Definition
| Tastes go up, demands go up |
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Term
| What future expectations affect todays demand? |
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Definition
| Income, wealth, prices, job prospects |
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Term
| What causes a shift of a demand curve |
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Definition
| change in income/wealth/prices of other goods, tastes, expectations |
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Term
| What causes movement along a curve? (change in quantity demanded) |
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Definition
| change in a price of a good |
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Term
| graph - income falls, normal good vs. inferior good |
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Definition
| normal graph shifts left, inferior good shifts right |
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Term
| What does supply depend on? |
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Definition
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Term
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Definition
| Total revenue - Total costs |
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Term
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Definition
| As price goes up, quantitiy of supply goes up |
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Term
| What happens to supply if input prices(wages, rental rates, etc.) go up? |
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Definition
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Term
| What happens to supply if there is technological advance (cost of production goes down)? |
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Definition
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Term
| What happens to the supply of one good, if the price of a substitute goes up |
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Definition
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Term
| What happens to the price of one good, if the price of a complement goes up? |
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Definition
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