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Shifts in the Demand Curve definitions

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Terms in this set (15)

  • Demand Curve
    A graphical representation showing the relationship between price and the quantity consumers are willing to buy at each price.
  • Normal Goods
    Products for which demand increases as consumer income rises, often associated with higher quality or luxury.
  • Inferior Goods
    Items for which demand decreases as consumer income rises, typically considered lower quality or budget options.
  • Substitute Goods
    Products that can replace each other; a price increase in one leads to higher demand for the other.
  • Complementary Goods
    Items usually purchased together; a price increase in one causes demand for the other to fall.
  • Consumer Preferences
    Tastes and trends influencing demand; shifts occur when popularity or desirability of a product changes.
  • Consumer Expectations
    Beliefs about future prices or income that affect current demand, often leading to increased purchases if higher prices are anticipated.
  • Number of Consumers
    The total population of buyers in a market; more buyers generally result in higher demand.
  • Directly Proportional Relationship
    A situation where two variables move in the same direction, such as income and demand for normal goods.
  • Inversely Proportional Relationship
    A scenario where one variable rises as the other falls, like price of complements and demand.
  • Quantity Demanded
    The specific amount of a product consumers are willing to buy at a given price, represented by movement along the curve.
  • Shift to the Right
    An increase in demand, shown as the demand curve moving outward, often due to positive market changes.
  • Shift to the Left
    A decrease in demand, depicted as the demand curve moving inward, usually caused by negative market factors.
  • Advertising
    A tool for increasing the number of consumers by raising awareness and desirability of a product.
  • Market
    The environment where buyers and sellers interact, influencing demand through various determinants.