Chapter+4

Notes
 * 1) Demand is the desire to own something and the ability to pay for it.
 * 2) Buyers demand goods as well as what quantity of a good will be produced.
 * 3) The law of demand says that when a good's price is lower, consumers will buy more of it.
 * 4) The substitution effect states that as the price of one good rises then another product will be in place because of its lower cost.
 * 5) The income effect means that if the price rises then you will buy less then you normally would.
 * 6) A demand schedule is a table that lists the quantity of a good that a person will purchase at each price in a market.
 * 7) A sale! can make people or encourage consumers to buy more.
 * 8) A demand curve is a graphic representation of a demand schedule.

4.1 - 1-4 on pg 83
 * 1) The income effect is when prices rise and instead of buying say like you would use to go to like Nordstrom because you liked quality. but since you have felt the economic effect, you go buy at like thrift stores or like Ross.
 * 2) A. The relationship between the price of this good and the quantity that Ashley will purchase. B. The curve slopes downward to the right. C. Shows the quantity demanded by consumers.
 * 3) Only in a free market can we openly change prices and spend our money in any way.

4.
 * Price || Quantity of Demand ||
 * $3.00 || 5 ||
 * $4.00 || 5 ||
 * $6.00 || 4 ||
 * $10.00 || 3 ||
 * $20.00 || 2 ||

4.2 #1-7 pg. 88 1. An inferior good is like buying a new car. 2. An example of a complement for another is like skis and ski boots. You get both. Or like when you bought the Xbox Halo Limited Edition, you get the game and the xbox. 3. Subsitutues: a car and motorcycles. 4. Affects demand curve because they go up and down on prices but other is constant. 5. Prices of houses went up because the house were remodeled, new houses around it were built and it made the prices go up. 6. A shift along the curve is the demand of products going up and shifting of a demand curves prices rising and in return demand goes down. Prices go up, demand goes up. Prices go down, demand goes down. 7.A. demand would be down if prices were down. B.quality demanded would be when people are more familiar with the product. C. quantity demand is when there is not much amount of quantity of the product so prices will rise.!

4.3 Take Notes Answer questions #1-4, 7 and also questions #1-7, 9-14, 16 on pg 98-99

Notes: