Final answer:
The demand curve is a graphic representation of the quantities of a good that will be bought at each price. The income effect refers to changes in consumption patterns that result from a change in income. Inferior goods are goods for which demand decreases as income increases.
Step-by-step explanation:
The graphic representation of the quantities of a good that will be bought at each price is called the demand curve. It shows how the quantity demanded of a good changes as its price varies. The demand curve slopes downward from left to right, indicating that as price increases, the quantity demanded decreases.
The income effect refers to the changes in consumption patterns that result from a change in income. When income increases, people may choose to buy more of certain goods (normal goods) or less of certain goods (inferior goods).
An inferior good is a type of good for which demand decreases as income increases. For example, if a person's income increases, they may choose to buy less cheap wine and more expensive imported beer. The demand curve for an inferior good would shift to the left.