Chapter 3/4: Demand

Vocabulary flashcards generated from the economics notes covering core concepts of demand, supply, income, and human populations.

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 - can be used to calculate the expected quantity demanded

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 (between price and quantity demanded)

when price goes up, the quantity demanded falls and when the price goes down the quantity demanded rises

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 direct taxes

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

supply

amount that producers are willing to offer for sale at different prices in a given period of time

supply curve

line drawn on a graph which shows how much of a good sellers are willing to supply at different prices

per annum (p.a.)

for or in each year

proportionate relationship (between price and the quantity supplied)

when the price goes up, the quantity supplied also goes up and when the price goes down the quantity supplied goes down