| A | B |
|---|
| aggregate household spending | total purchases of all goods and services by all consumers |
| change in quantity demanded | a movement along the demand curve that results from a change in the price of a good |
| change in demand | a shift of the whole demand curve that results from a change in one of the ceteris paribus conditions for demand |
| complement (complementary good) | goods that are used together eg bread and butter |
| demand | the quantity of a good that consumers are willing and able to buy at each price |
| demand conditions | the ceteris paribus condtions for demand are income, price of other goods, taste and fashion |
| demand curve | a graph of a demand schedule |
| demand schedule | a list of the quantity of a good that is demanded at each price |
| direct tax | tax that is paid straight to the government (eg income tax). It affects the consumer's disposable income and therefore the demand curve |
| income | money received |
| market demand curve | the total of each individual's demand. It is the horizontal addition of all the individual demand curves |
| movement along a demand curve | a change in quantity demanded that results from a change in price |
| price | the amount that is paid for a good by a consumer |
| shift of the demand curve | occurs when there is a chnage in the ceteris paribus conditions for demand |
| substitutes (substitute goods) | goods that are used instead of each other (eg butter and margarine) |
| transfers | the payment of money to those in need in the form of benefits |
| tax | a compulsory payment to the government (eg income tax) |
| luxuries | Goods and services which are not neede for survival. hese are usually expensive goods. |
| normal goods | A good for which demand would increase as income increases |
| Inferior good | A good for which the demand would decrease as income increases |
| Aggregate household income | The total of income in the household |
| ceteris paribus | Holding all factors but one constant |
