Chapter 7 Content

A demand curve is always upward-sloping.

Usefulness or satisfaction

A measure of responsiveness that describes the way dependent variables change in response to a change to independent one

The extra usefulness or additional satisfaction an individual gets from acquiring or using one more unit of a product

If you expect a new TV to go on the market next year, you are going to go ahead a buy a TV now.

Economics is a social science.

Higher prices are associated with smaller amounts; lower prices are associated with larger amounts demanded

Demand describes the various amounts of a product that someone is __________ and _______ to buy over a range of prices

Price and quantity are observed to calculate demand.

If the price of butter increases, then the demand curve will shift right for margarine.

If an unfavorable report comes out about a product, the demand curve will shift left.

Microeconomics is the part of economic theory that deals with behavior and decision making by people and ________

Demand for many products and services changes constantly.

Ceteris Paribus is the simple assumption economists use to determine that all other factors remain constant.

The demand schedule shows the various ________ demanded of a particular product at all prices that might prevail

Quantity demanded varies inversely with price.

According to diminishing marginal utility, the satisfaction you get from using additional units of a product will begin

A change in the number of consumers will change the demand for a product.

If consumers income increases, the demand curve will shift right.

An incentive is something that keeps you from making a purchase.

What type of economy allows people and firms to act in their own best interest?

If the price of personal computers increases, the demand for software will...