economics: section 4.3

law of demand

other things remaining equal, as the price of a good increases, the quantity demanded decreases

1. increases

2. decreases

fill in the blank

the basic law of demand states that other things remain equal, as the price of a good __________, the quantity demanded __________

income effect

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

substitution effect

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

price

one thing that affects quantity demanded

demand schedule

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

demand curve

graphic representation that compares price of a good with quantity demanded

• down

• right

fill in the blank

the demand curve will always move ______ and to the ______

1. Taste and Preference

2. Income (normal and inferior goods) 

3. Population 

4. Price of Related Goods (substitutes or Complements) 

5. Consumer Expectations

list the changes in demand.