Determinants of Demand and Demand Curve Movements

Vocabulary flashcards defining key economic terms related to demand, substitutes, normal/inferior goods, and demand curve shifts from the lecture transcript.

Normal Good

A good for which an increase in income causes the demand curve to shift straight out.

Inferior Good

A good for which an increase in income causes the demand curve to shift to the left.

Substitutes

Goods that easily replace each other, where an increase in the price of one good causes the demand for the other good to rise.

Own Price Change

A change in the price of the good itself, which cannot shift the demand curve and can only cause movement along it.

Taste and Preferences

A determinant of demand representing consumer sentiment, where changes (such as learning a food item like lettuce may cause diarrhea) shift the demand curve.

Decrease in Demand

A shift of the demand curve straight to the left, caused by factors such as negative changes in taste and preferences.