Chapter+4+Work

4.1 #1-4 on pg 83 Notes:
 * Demand is the desire to own something and the ability to pay for it.
 * Buyers demand goods as well as what quantity of a good will be produced.
 * The law of demand says that when a good's price is lower, consumers will buy more of it.
 * The substitution effect states that as the price of one good rises then another product will be in place because of its lower cost.
 * The income effect means that if the price rises then you will buy less then you normally would.
 * A demand schedule is a table that lists the quantity of a good that a person will purchase at each price in a market.
 * A sale can make people or encourage consumers to buy more.
 * A demand curve is a graphic representation of a demand schedule.
 * 1) The income effect is when prices rise and then if you buy fewer slices of pizza without increasing your purchases of their foods as an example that would be the income effect.
 * 2) A. The relationship between the price of this good and the quantity that Ashley will purchase. B. The curve slopes downward to the right. C. Shows the quantity demanded by consumers.
 * 3) Because only in a free market can we openly change prices and spend our money in any way we wish to.
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4.2 notes 1-7
 * Ceteris paribus is the latin phrase for "all other things present"
 * Normal goods are goods that consumers demand more of when their income increase.
 * inferior goods on the other hand are goods that fall in demand as income falls.
 * complements are two goods that are bought and used together
 * and substitutes are goods used in place of one another.
 * 1) An inferior good would have to be food.
 * 2) Ketchup and fries would be a complementary good.
 * 3) Store brand ibuprofen and and store brand goods could be subtitiutes to name brands.
 * 4) If ceteris paribus assumptions are true then the demand curve in turn will also be accurate.
 * 5) It has gone up
 * 6) A shift along the curve is the demand of products going up while a shift of a demand curve is prices rising and in turn demand going down.
 * 7) A. (Demand) with the prices down people will want to buy it more rather than if the prices were higher. B. (quantity demanded) then more poeple will know about it. C (quantity demand) because there is little quantity then the price and price will rise.

4.3 Take Notes...Answer questions #1-4, 7 and also questions #1-7, 9-14, 16 on pg 98-99