Ch 3 - Demand 

________: goods which have a joint demand as they enhance the satisfaction derived from another good.

________: alternative goods can satisfy the same want and need.

A change in the ________ of either will have an effect on the demand for complementary goods.

________: overwhelming amount of choices.

________: the quantity of a product which consumers are willing and able to buy.

________: demand decreases, quality demand decreases.

________: demand increases, quality demanded decreases.

Bounded ________: theory that consumers have limited rational decision making driven by cognitive ability, time constraint, and imperfect information.

________: by purchasing power, the purchaser has the money to pay for the product.

do not have purchasing power

states that as the price of product falls, the quantity demanded will increase

1. Prices   2. Income   3. Number of buyers    4. Taste/preference  5. Expectations

• Income drops

• Substitution falls

• Compliments rises

• Buying discouraged

• Income rises (normal goods)

• Price of substitution rises

• Price of complementary falls

• Encouraged buying

• Population likely to buy increases