the amount that consumers are willing and able to buy at each given price level
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Effective demand
demand supported by the ability to pay for a good or service
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market demand
total demand in a market for a good, the sum of all individuals' demand, at each price level
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contractions in demand
falls in the quantity demanded caused by rises in prices
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extensions in demand
increases in demand caused by changes (falls) in price
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normal goods
goods or services that will increase in demand when incomes rise
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inferior goods
goods or services that decrease in demand when incomes rise
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complementary products
goods that are consumer together e.g. bread and butter
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composite demand
a good that is demanded for more than one purpose so that an increase in demand for one purpose reduces the available supply for the other purpose, typically leading to higher prices e.g. milk used for butter and cheese
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derived demand
when the demand for one good or service comes from the demand for another good or service e.g. demand for cars stimulates the demand for steel so the demand for steel is derived demand.
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Other cards in this set
Card 2
Front
demand supported by the ability to pay for a good or service
Back
Effective demand
Card 3
Front
total demand in a market for a good, the sum of all individuals' demand, at each price level
Back
Card 4
Front
falls in the quantity demanded caused by rises in prices
Back
Card 5
Front
increases in demand caused by changes (falls) in price
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