1.1.3 - Demand

Demand curve

Line drawn on a graph that shows how much of a good will be bought at different prices.

Demand schedule

Table of the quantity demanded of a good at different price levels

Effective demand

Amount of a good people are willing to buy at given prices over a given period of time supported by the ability to pay

Inverse relationship

When price increases the price goes up, the quantity demanded falls and vice versa

Shift in the demand curve

Movement to the left or right of the entire demand curve when there is a change in any factor affecting demand except the price

Disposable income

Income that is available to someone over a period of time to spend: it includes state benefits but excludes state benefits

Inferior goods

Goods for which demand will fall if income rises or rise if income falls

Normal goods

Goods for which demand will increase if income increases or fall if income falls

Substitute goods

Goods bought as an alternative to another but perform the same function

Complementary goods

Goods purchased together because they are consumed together

Demography

Study of human populations and the way in which they change