Economics unit 2 test

The quanity demanded for goods and services that varies inversely with its price

A) Income effect- change in quanity demanded bc of the change in price that alters the consumers real income B) Marginalism Marginal utility

A)Income effect B) substitution effect-change in quanity demanded bc of the relative price of the product

# of consumers Consumers income Change in Expectations Consumer taste Substitutes-takes place of another Complements-use of 1 increases othe

quantity supplied responds to change in price.- if a small increase in price leads to a relatively larger increase in output

a given change in price causes a relatively smaller change in quantity demanded

quantity supplied makes a relatively smaller decrease in output

quantity supplied responds to change in price.- if a small increase in price leads to a relatively larger increase in output