Complementary goods are:
Goods that are purchased together
What is an elastic good?
Demand is price sensitive, a want.
What is an inelastic good?
Demand is not price sensitive, a need.
What does ceteris paribus mean?
all other things held constant.
A table describing the prices and quantities supplied of a given produce.
Supply Schedule
The supply curve goes... (up or down)
up
The demand curve goes... (up or down)
down
Give an example of an inferior good.
Any off brand
Give an example of a normal good.
Any name brand
_____ are goods that can be purchased in place of one another.
Substitutes
A table describing the prices and quantities demanded of a given produce.
Demand Schedule
The concept that as price goes up, demand goes down...and vice versa
Law of Demand
What two things must you have to be considered part of demand?
willing and able
Name three of the six determinates of demand
income, number of buyers, preference, complements, substitutes, future price.
Draw a decrease in the demand curve.
shifts left
The law of supply states, as price increases...
supply increases
