Economics chapter 4 section 1
substitution effect
Ex) Eating salad or tacos instead of pizza when the price of pizza goes up.
law of demand
Ex) The higher the price of pizza, the fewer slices people will buy.
income effect
Ex) buying fewer slices of pizza when rising prices reduce real income.
substitution effect
When consumers react to an increase in When consumers react to an increase in a good's price by consuming less of that good and more of substitute good.
market demand schedule
price------------quantity 1 ------------------300 2------------------250 3 ------------------200 4-------------------150
demand schedule
price------------quantity 1 ---------------------5 2---------------------4 3---------------------3 4---------------------2
Surgeon general warns that eating beef can be hazardous to your health will cause?
A decrease in demand for beef.
demand curve
A graphic representation of a demand schedule.
demand curve
A graphical representation of a demand schedule.
demand schedule
A table that lists the quantities of a good a person will buy at each price that may be offered in the market.
market demand schedule
A table that lists the quantities of a good demanded by all consumers at each price that may be offered in the market.
demand schedule
A table that lists the quantity of a good a person will buy at various prices in the market.
market demand schedule
A table that lists the quantity of a good all consumers in a market will buy at each different price.
How does the price of any item affect the quantity demanded that item?
As the price of the item increases the demand decreases for that item.
law of demand
Consumers will buy more of a good when its price is lower and less when its price is higher.
income effect
Is the change in consumption resulting from a change in real income.
Law of demand
Says that when a good's price is lower, consumers will buy more of it.
income effect
The change in consumption that results when a price increase causes real income to decline.
demand
The desire to own something and the ability to pay for it.
Take home pay for Americans drops 3rd. month in a row ?
Will decrease the demand for beef
Higher price for charcoal threatens Memorial Day Cookouts?
Will decrease the demand for beef.
Nationwide fad: The Hip- Hop Burger?
Will increase the demand for beef.
Price of beef to rise will cause?
demand for beef to decrease
pork prices drop will cause?
demand for beef will decrease (substitution affect)
millions of immigrants swell U.S. population
demand for beef will increase