Ch. 3

• What is demand in economics?

  The quantity consumers are willing to buy
• What factors influence demand for a good or service?

  Price, other goods' prices, incomes, preferences
• What is joint demand?

  Demand for interdependent goods demanded together
• What is composite demand?

  Demand for a good with multiple uses
• What is competitive demand?

  Demand for goods that compete with each other
• What does ceteris paribus mean?

  All other things being equal
• What does the law of demand state?

  Inverse relationship between quantity demanded and price
• What is a demand curve?

  A graph showing quantity demanded at various prices
• What is a normal good?

  Quantity demanded increases with higher incomes
• What is an inferior good?

  Quantity demanded decreases with higher incomes
• What are substitutes in economics?

  Goods regarded as alternatives by consumers
• What are complements in economics?

  Goods consumed together, affecting each other's demand
• What is consumer surplus?

  Value gained from consuming over the price paid