1. Economics Chapter 4 Section 2

2. Change in Quantity Demanded Change in quantity demanded- a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price Income effect- the change in quantity demanded because of a change in price that alters consumers real income

5. Change in Quantity Demanded Replace a more costly event like going to a concert with a less costly event like buying a CD Substitution effect- the change in quantity demanded because of the change of the relative price of the product

6. Change in Demand Change in demand- people are now willing to buy different amounts of the product at the same prices= results in an entirely new curve Consumer income can cause a change in demand

8. Consumer Tastes Advertising, news reports, fashion trends, the introduction of new products and changes in the season can affect consumer tastes This will effect the demand curve- positively w/ good advertising or negatively as people get tired of things Inventions- good/ bad

10. Compliments/ Substitutes Substitutes- can be used in the place of other products- exp. Butter and margarine The demand for product tends to increase if the price of its substitute increases Complements- use of one increases the use of the other- exp- personal computer and software- Gillette razor blades The demand for complimentary products tend to do down as the price of the compliment goes up

12. Expectations/ # of Consumers Expectations- if people expect a product to come to the market soon it may change what they buy, or weather expectations effecting businesses Number of consumers- an increase or decrease in the number of consumers can cause a shift on the market demand curve