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The James-Lange theory of emotion theories explains that the feelings occur after the bodily arousal, that is, one sees the growling dog, then runs, is aroused, and, lastly, feels fear.
Inferior Goods
Goods for which demand decreases as consumer income rises, opposite to normal goods.
Normal Goods
Goods for which demand increases as consumer income rises, and decreases as consumer income falls.
Complements
Goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a strong response and low elasticity indicating a weak response.
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