Vocabulary
Practice the vocabulary words from the lesson.
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.
Demand
Factors other than the price of a good or service that change (shift) the demand schedule, causing consumers to buy more or less at every price. Factors include income, number of consumers, preferences and prices of related goods.
Determinants of demand
The amount of a good or service people will buy at a given price in a given period of time.
Quantity demanded
Non-price determinants are important, because they can change the number of units of products and services sold, irrespective of their prices.
Non-price determinants
A commodity whose quantity demanded increases when the real income of a consumer rises.
Normal good
The law of demand is an inverse relationship between price and quantity demanded. As price rises, quantity demanded falls - and vice versa.
Law of Demand
A commodity whose quantity demanded decreases when the real income of a consumer rises - and vice versa.
Inferior Good
Goods and/or services that are often consumed together, (e.g. hot dogs and buns, or chips and salsa).
Complements
Goods or services that may be used in place of another good or service; examples include tap water for bottled water (or vice versa) and movies for concerts (or vice versa).
Substitute Goods and Services