Microeconomics - Chapter 4 Key Concepts questions and answers Rated A+

Microeconomics Chapter 4 Key
Concepts




Market - answersa group of buyers and sellers of a particular good or service

Competitive Market - answersa market in which there are many buyers and many
sellers so that each has a negligible impact on the market price

Quantity Demanded - answersthe amount of a good that buyers are willing and able to
purchase

Law of Demand - answersthe claim that, other things equal, the quantity demanded of a
good falls when the price of the good rises

Demand Schedule - answersa table that shows the relationship between the price of a
good and the quantity demanded

Demand Curve - answersa graph of the relationship between the price of a good and
the quantity demanded

Normal Good - answersa good for which, other things equal, an increase in income
leads to an increase in demand

Inferior Good - answersa good for which, other things equal, an increase in income
leads to a decrease in demand

Substitutes - answerstwo goods for which an increase in the price of one leads to an
increase in the demand for the other