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| demand | the desire to own something and the ability to pay for it |
| law of demand | consumers will buy more of a good when its price is lower and less when its price is higher |
| substitution effect | when consumers react to an increase in a good's price by consuming less of that good and more of a substitute |
| income effect | the change in consumption that results when a price increase causes real income to decline |
| demand schedule | a table that lists the quantity of a good a person will buy at various prices in a market |
| market demand schedule | a table that lists the quantity of a good all consumers in a market will buy at various prices |
| demand curve | a graphic representation of a demand schedule |
| economics | the study of how individuals, businesses, and governments make choices when faced with a limited supply of resources |
