Supply and Demand

consumers will buy more of a good when its price is lower and less when its price is higher

demand schedule for an individual & a market for the same product what will remain the same

table listing the quantity of a good that all consumers will buy at various prices

goods that are used in place of one another

change in consumption that results when a price increase causes real income to decline

entire amount of money a company receives by selling goods or services

price of cranberry juice suddenly increases/as a result,Glenda begins drinking more grape juice

When will increased demand for one good increase demand for another?

Your demand for a good is inelastic if you consider the good to be

consuming less of a good and more of another as a reaction to a price increase

How might advertising lead to a shift in the demand curve?

How can expectations about the future change consumer behavior?

How does elasticity affect a company’s pricing policy?

A good that is perceived as a ________will be purchased even if the price rises.

Due to an increase in her rent, Ida needs to cut back spending on other items./consume less of?

measure of how consumers respond to price changes

good that consumers demand less of when their incomes increase

Why is demand for milk inelastic?

If prices rise but not income, what is the effect on demand?

not very sensitive to price changes

 half-price sale /consumers react to the sale buying more CD's than on a typical day

two goods that are bought and used together

Which of the following is the correct mathematical formula / calculating elasticity of demand?

store notices that demand for all types of bread has been dropping steadily over the last year

The substitution effect and the income effect describe