Notesale: Turn your study into money

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ECONOMICS
Change in Quantity Demanded
The movement along a demand curve caused by a change in the price of a
good
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In an economic sense, when the price of a good rises, the demand for its
complement will fall because consumers don't want to use the complement
alone
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The relationship between
income and the quantity demanded is a positive one, as income increases, so
does the quantity of goods and services demanded
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Law of Diminishing Marginal Utility
A law of economics stating that as a person increases consumption of a
product - while keeping consumption of other products constant - there is a
decline in the marginal utility that person derives from consuming each
additional unit of that product
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Substitution Effect
The idea that as prices rise (or income decreases) consumers will replace more
expensive items with less costly alternatives
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Elastic Demand
Demand for a product is sensitive to price changes
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An example of perfectly inelastic
demand would be a life saving drug that people will pay any price to obtain
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For example, a consumer will purchase
more pizzas if the price of pizza falls
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Income
A rise in a person's income will lead to an increase in demand (shift demand
curve to the right), a fall will lead to a decrease in demand for normal goods
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Consumer Preferences
Favorable change leads to an increase in demand, unfavorable change lead to a
decrease

Consumer Expectations
Expectations of future income and prices can affect demand
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Market Size
As I get more consumers, market size expands, more demand
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change in
demand?
A change in quantity demanded is brought about by a change in price
...
In terms of demand curve, a change in
quantity demanded is moving along an existing demand curve while a change
in demand is a shift of the demand curve to the left or right

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