question
price-consumption curve
answer
curve tracing the utility-maximizing combinations of two goods as the price of one changes
question
individual demand curve
answer
curve relating to the quantity of a good that a single consumer will buy to its price
question
income-consumption curve
answer
curve tracing the utility maximizing combinations of two goods as a consumer's income changes
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Engel curve
answer
cure relating the quantity of a good consumed to income
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substitution effect
answer
change in consumption of a good associated with a change in its price, with the level of utility held constant
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income effect
answer
change in consumption of a good resulting from an increase in purchasing power, with relative prices held constant
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inferior good
answer
a good that has a negative income effect
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Giffen good
answer
good whose demand curve slopes upward because the (negative) income effect is larger than the substitution effect
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market demand curve
answer
curve relating the quantity of a good that all consumers in a market will buy to its price
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isoelastic demand curve
answer
demand curve with a positive price elasticity
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speculative demand
answer
demand driven not by the direct benefits one obtains from owning or consuming a good but instead by an exception that the price of the good will increase
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consumer surplus
answer
difference between what a consumer is willing to pay for a good and the mount actually paid
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network externality
answer
situation in which each individual's demand depends on the purchase of other individuals
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bandwagon effect
answer
positive network externality in which a consumer wishes to possess a good in part because others do
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snob effect
answer
negative network externality in which a consumer wishes to own an exclusive or unique good
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