Learning Curve - Ch. 2: Demand: Thinking Like a Buyer
_____ in demand is a shift of the _____ to the left.
A decrease; demand curve
The _____ is a graph summarizing your buying plans and how they vary with price.
individual demand curve
A change in price causes a _____ the demand curve, yielding a change in the _____.
movement along; quantity demanded
Lower prices of gas yield a rise in the quantity demanded in the market because:
lower prices attract both existing and new customers to buy more gas.
To verify the movement of the demand curve, if the only thing that's changing is the price, then you're thinking about a:
movement along the demand curve.
If the price of books drops from $15 to $9, the quantity of books demanded in the market would _____ by _____ million books per week.
rise; 0.4
_____ are goods that replace each other. Your demand for a good will increase if the price of the other good rises.
Substitute goods
To maximize your economic surplus, you should apply the Rational Rule for Buyers by continuing to buy until _____.
Price = Marginal benefit
If your demand for goods _____ when your income is higher, we call these goods _____.
decreases; inferior goods
________occur when a good becomes less valuable because other people use it. If more people buy such a product, your demand for it will _____.
Congestion effects; decrease
_____ means that each additional item you buy yields a smaller marginal benefit than the previous item.
Diminishing marginal benefit
_____ is a graph plotting the total quantity of an item demanded by the entire market, at each price.
The market demand curve
A change in price in a market demand curve causes:
a movement along the demand curve.
Your demand for any good will decrease:
if the price of its substitutes falls.
What direction would a demand curve go if it decrease,________ compared if the demand increase ,___________
to the right; to the left
Market demand curves obey the "law of demand," which states that:
the total quantity demanded is higher when the price is lower.
