Lernkarten

Karten 18 Karten
Lernende 2 Lernende
Sprache English
Stufe Universität
Erstellt / Aktualisiert 17.11.2012 / 13.03.2015
Lizenzierung Kein Urheberrechtsschutz (CC0)
Weblink
Einbinden
3 Exakte Antworten 15 Text Antworten 0 Multiple Choice Antworten
Fenster schliessen

price-consumption curve

Curve tracing the utility-maximizing combinations of two goods as the price of one changes.

Fenster schliessen

Individual demand curve

Curve relating the quantity of a good that a single consumer will buy to its price.
Fenster schliessen

An inferior Good

An increase in a person’s income can lead to less consumption of one of the two goods being purchased.
Fenster schliessen

Engel curve

Curve relating the quantity of a good consumed to income.
Fenster schliessen

Recall this

Two goods are substitutes if an increase in the price of one leads to an increase in the quantity demanded of the other.

Two goods are complements if an increase in the price of one good leads to a decrease in the quantity demanded of the other.

Two goods independent if a change in the price of one

good has no effect on the quantity demanded of the other.

Fenster schliessen

effects of a fall in price

1. Consumers will tend to buy more of the good that has

become cheaper and less of those goods that are now

relatively more expensive.

2. Because one of the goods is now cheaper, consumers

enjoy an increase in real purchasing power.

Fenster schliessen

substitution effect

Change in consumption of a good associated with a change in its price, with

the level of utility held constant.

Fenster schliessen

income effect

Change in consumption of a good resulting from an increase in purchasing

power, with relative prices held constant.