Economics Chapter 4: Section 4.3

quantity demanded is affected by?

price

when the price of a good falls, more of that good will be bought; the opposite is true as well

Income Effect

less expensive goods will be substituted in the place of more expensive good

Substitution Effect

 a list that compares the price of a good with the quantity demanded

Demand Schedule

will always go down to the right

Graphic representation that compares price of a good with quantity demanded

Demand Curve

1. Taste and Preference 

2. Income (normal and inferior goods) 

• Normal good is something that you would normally buy 

• Inferior good means the demand for a good decreases as consumers incomes increase and vice versa 

3. Population 

4. Price of Related Goods (Substitutes or Complements) 

5. Consumer Expectations

Changes in Demand