Fill in the Blanks Module 5Online version Demand - Fill-in-the-Blank by Zachary Foust 1 and supply demand market price many model A is a group of producers and consumers who exchange a good or service for a payment . A competitive market is one in which there are buyers and sellers of the same good or service . The key feature of a competitive market is that no individual's actions have a noticeable effect on the at which the good or service is sold . When a market is competitive its behavior is well desribed by the . 2 quantity quality of schedule specific price law demand downward curve demanded switch less quantity A demand is a table that shows how much of a good or service consumers will want to buy at different prices . A demand schedule assumes that the of the product does not change . As the price of a good or service rises , the falls . Quantity demanded is the actual amount of a good or service that consumers are willing and able to buy at some price . The demand is a visual representation of the demand schedule . The y - axis of the graph shows the of each unit of the good or service . The x - axis of the graph shows the of the good or service . The demand curve slopes , which reflects the general proposition that a higher price reduces the quantity demanded . When the price of a product is relatively high , some people buy the product often or to alternatives . The says that a higher price for a good or service leads people to demand a smaller quantity of that good or service . 3 shift not price curve price shifted distinction Changes in factors other than generate a new demand schedule . A new demand schedule corresponds with a new demand . A change in demand is represented by a of the demand curve . It is crucial to make the between changes in demand and movements along the demand curve . Movements along the demand curve are caused by changes in the of the product . When economists talk about a " change in demand , " they mean that the demand curve has . A " change in demand " is caused by a change in the price . 4 preferences shift leftward decreases decreases normal inferior increases expectations decreases Complements decreases increases increases tastes decreases decreases increases decreases market rightward increases increases Substitutes increases An increase in demand means a shift of the demand curve . A decrease in demand means a shift of the demand curve . There are five principal factors that the demand curve for a good or service : changes in the prices of related goods or services , changes in income , changes in tastes , changes in expectations , and changes in the number of consumers . are usually goods that in some way serve a similar function . When the price of a substitute rises , the demand for the original good . When the price of a substitute falls , the demand for the original good . are usually consumed together . When the price of a complement falls , the demand for the original good . When the price of a complement rises , the demand for the original good . Goods for which demand increases when income rises are known as goods . When income rises , the demand for a normal good . When income falls , the demand for a normal good . Goods for which demand decreases when income rises are known as goods . When income falls , the demand for an inferior good . When income rises , the demand for an inferior good . Economists usually lump together changes in demand due to fads , beliefs , cultural shifts , and so on under the heading of changes in , or . When tastes change in favor of a good , the demand for the good . When tastes change against a good , the demand for the good . The current demand for a good is often affected by about its future price . When the price is expected to rise in the future , the demand for the good today . When the price is expected to fall in the future , the demand for the good today . The demand curve shows the combined quantity demanded by all consumers . When the number of consumers rises , the demand for the good . When the number of consumers falls , the market demand for the good .
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