refers to the willingness and ability of someone to pay for a good or a service at a given price.
1 of 8
What is a subsitute good? Give an example.
Goods and services that can be used instead of one another. E.g Coca cola and Pepsi.
2 of 8
What are complimentary goods? Give an example.
goods and services that need to be used together to produce the desired effect. E.g DVDs and DVD players
3 of 8
What is real income?
The amount of money that you earn, such as your salary, after having been adjusted for inflation.
4 of 8
What is disposable income?
The amount of money that is kept after your taxes are paid.
5 of 8
What is discretionary income?
The amount of money that is left after you have paid your mortgages and loans – in essence this is the money that is left for you to spend as you wish
6 of 8
What causes movement along the curve?
If there is a change in the price of goods or services than there will be movement along the demand curve for that good or service: Remember that whenever there is an increase in price then there will also be a decrease in quantity demanded and vice
7 of 8
What causes a shift of the curve?
If there is a change in the price of goods or services than there will be movement along the demand curve for that good or service: Remember that whenever there is an increase in price then there will also be a decrease in quantity demanded and vice
8 of 8
Other cards in this set
Card 2
Front
Goods and services that can be used instead of one another. E.g Coca cola and Pepsi.
Back
What is a subsitute good? Give an example.
Card 3
Front
goods and services that need to be used together to produce the desired effect. E.g DVDs and DVD players
Back
Card 4
Front
The amount of money that you earn, such as your salary, after having been adjusted for inflation.
Back
Card 5
Front
The amount of money that is kept after your taxes are paid.
Comments
No comments have yet been made