Economic Vocab Activity-Chapter 4: Demand

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Marginal Utility
the extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product
Demand curve
is a listing that shows the various quantities demanded of a particular product at all prices.
Subsitution effect
The change in quantity demanded because of the change in the relative price of the product.
elasticity
a measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price
demand scheduale
A chart used to list various prices and the quatity demanded at each price.
microeconomics
branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
inelastic
a given change in price causes a proportional change in the quantity demanded, a given change in price causes a relatively smaller change in the quantity demanded
income effect
the change in quantity demanded because of a change in price that alters consumers’ real income
demand elasticity
the extent to which a change in price causes a change in the quantity demanded
Law of Demand
consumers buy more of a good when its price decreases and less when its price increases
unit elastic
a given change in price causes a proportional change in quantity demanded
complements
Related goods where the use of one increases the use of the other
Categories: Vocabulary