Chapter 4-1: Understanding Demand

According to the law of demand, as prices rise, the __________________ demanded decreases.

In order to have demand for a good/service you must be both _______________ & ________________ to purchase it.

According to the law of demand, as prices decrease, the quantity demanded of a good/service _________________ .

According to the _________________ effect, when the price of a good/service increases we are likely to replace it with something else.

When the price of a particular good/service decreases you feel as though you are wealthier. Likewise if prices go up you feel less well off. This is referred to as the ______________ effect.

The owner of a store is most interested in knowing the quantity demanded by all customers at each price. This is referred to as a(n) _________________ _________________ ___________________ (3 words).

When making a demand/supply chart, ______________ is always listed on the Y axis.

When making a demand/supply chart, _______________ is always listed on the X axis.

According to the law of demand, when displayed on a graph the demand _______________ will always slope ____________.

The image above represents which of the following?