Giffen Good 

When the optimal demand for a good decreases when its price falls, this good is known as a ____________.

Substitution effect 

 The change in demand due to the change in the rate of exchange between two goods is known as what? 

Income effect 

The change in demand due to having more purchasing power is called the ____________. 

True 

 True or False

When the change in demand is due entirely to the income effect, this is a case of perfect complements. 

d) both perfect substitutes and quasilinear preferences have changes in demand due entirely to the sub. effect. 

 When the entire change in demand is due to the substitution effect we have an example of

a) perfect complements

b) perfect substitutes

c) quasilinear preferences

d) b and c 

e) a and c 

Endowment 

This is known as the amount of goods a consumer has before he/she enters the market. 

Gross 

The _________ demand for a good is the amount of good that the consumer actually ends up consuming: how much of each of the goods he or she takes home from the market. 

Net demand 

This type of demand is known as the difference between what the consumer ends up with and the initial endowment of goods. (Simply the amount that is bought or sold of the good)