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4-2 vocabulary jw

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States that the marginal benefit of using each additional unit of a product during a given period will decline.   Law of dimishishing utility  
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The change in the amount that consumers will buy because the purchasing power of their income changes.   Income effect  
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A change in the amount that consumers will buy because they buy substitute goods instead.   Subsitution effect  
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An increase or decrease in the amount demanded because of change in price.   change in quantity demanded  
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Occurs when something prompts consumers to buy different amounts at every price.   Change in demand  
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Goods that consumers demand more of when their income rises.   Normal Goods  
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Goods that consumers demand less of when their incomes rise.   Inferior goods  
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Goods and services that can be used in place of each other.   Substitutes  
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Goods that are used together, so a rise in demand for one increases the demand for the other.   Complements  
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