Vocab Chap 11

Utility- Satisfaction from goods and services

Consumption- The using up of goods and services to satisfy wants

Interest- The return to savings or the cost of borrowing  

Personal Debt- The accumulated borrowing of a person

Credit Card- A card indicating the holder has been given a line of credit to make purchase

Real Disposable Incomes- Personal income after tax and adjusted changes in price

Saving Ratio- Savings as percentage of GDP

Consumer expenditure- The amount spent on goods and services

Savings- Delayed consumption to accumulate wealth

Collateral- Security against a loan

Experience goods- Products for which it is difficult to know how much we will enjoy them until we consume them

Wealth- The stock of valuable assets that can be converted to cash

Mortgage- A loan for property purchase

"Steve Jobs' Biography" and "The Pirate of Silicon Valley"

Market Economy Discussion Question

Coca-Cola Demand Worksheet

9. Suppose now your income doubles. How would this affect your answers to questions (1) to (5)?

The number of  cans I can buy would increase, thus increasing the quantity demand and in cases that the price are reduces or increases the effect on the average consumption wouldn't be effect as much.

10. What has happened to the curve now your income has doubled?

Since the income has been doubled the quantity demanded would increases as well, but not to the point of being  double. In relation to the demands, the prices which could rises due to higher demand. this would make the curve even wider due to the higher value in demand.

11. Suppose a survey shows that drinking coke causes young people to sweat more and have a greater chance of getting spots! How would this affect your answers to questions (1) to (5)?

This would make the demand falls due to healthcare of young people and adult.

12. What has happened to the curve as a result of this survey? 

The curve would stop curving and will start descending as the price drops in relation to the falling demand.