AP®︎ Microeconomics: Topic 2.1 Flashcards

The relationship between a good's price and the quantity consumers are willing and able to buy.

As price rises, quantity demanded falls; as price falls, quantity demanded rises, ceteris paribus.

A downward-sloping graph showing the relationship between price on the y-axis and quantity demanded on the x-axis.

Quantity demanded is one amount at one price; demand is the entire relationship shown by the curve.

A change in quantity demanded caused only by a change in the good's own price.

A leftward or rightward change of the entire curve caused by a nonprice determinant.

Income, number of consumers, substitutes, expectations, complements, and tastes change demand at every price.

For normal goods demand rises with income; for inferior goods demand falls as income rises.

Substitutes are used in place of each other; complements are used together.

When a good becomes relatively more expensive, consumers buy less of it and more of alternatives.

A price change changes purchasing power, altering how much consumers buy of the good.

Each additional unit consumed gives less extra satisfaction than the previous unit.

The total quantity all consumers demand at each price, found by summing individual demands.

A table showing the quantity consumers will buy at different prices.