Ch+4.1

__Ch 4.1 notes & Questions Pg. 83__

__Demand__- is the desire to own something and ability to pay for it

__The Law of Demand__ __Substitution Effect__ __The Income Effect__ __A demand schedule__ __A demand schedule__ __The demand graphs__
 * law of demand says that when a good's lower, consumers will buy more of it
 * substitution effect and income effect describe two different ways that a consumer can change his or her pending patterns
 * takes place when consumers react to rise in the price of one good by consuming less of that good and more of a substitute good
 * it also applies to a drop in prices
 * the change in consumption resulting from a change in real income
 * A demand schedule is a table that lists the quantity of a good that a person will purchase at eachprice in a market
 * A market demand schedule shows the quantities demanded at each price by all consumers in the market
 * A demand schedule is a table that lists the quantity of a good that a person will purchase at each price In a market
 * Market demand schedule shows the quantities demanded at each price by all consumers in the market
 * A demand curve is a graphic representation of a demand schedule

Questions 1. the change in consumption resulting from a change in real income 2. Start with low prices on the y axis Label quantities, The lowest possible on the x axis The graph it self, well when the dots get connected 3. the law of demand fits into a free market because there is no limit on what you wanna buy, especially if prices are low