Demand

substitutes: competing products that can be used in place of one another; products related in such a way that an increase in the price of one increases the demand for the other.

complements: products that increase the use of other products; products related in such a way that an increase in the price of one reduces the demand for both.

elasticity: a measure of responsiveness that tells us how a dependent variable, such as quantity, responds to a change independent variable, such as price.

demand elasticity: the extent to which a change in price causes a change in the quantity demanded.

diminishing marginal utility: decrease in satisfaction or usefulness as additional units are acquired

Demand

Marginal utility: satisfaction or usefulness from acquiring one more unit of a product

demand & marginal utility

demand curve: graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time.

law of demand: rule stating that more will be demanded at lower prices and less at higher prices; an inverse relationship between price and quality demanded.

inversely: the opposite way.

demand: combination of desire, ability and willingness to buy a product.

microeconomics: branch of economic theory that deals with behavior and decision making by small units such as individuals and firms.

demand schedule: listing showing the quantity demanded at all possible price that might prevail in the market at a given time.

prevail: to dominate

incentive: something that motivates.

market demand curve: demand curve that shows the quantities demanded by everyone who is interested in purchasing a product at all possible prices.

what is demand

change in quantity demanded: movement along demand curve showing that a different quantity is purchased in response to a change in price.

principle: a fundamental law or idea.

income effect: that portion of a change in quantity demanded caused by a change in a consumer's income when the price of a product changes.

substitution effect: the portion of change in quantity demanded caused by a change in price that makes other products more or less costly.

illustrated: shown

change in demand: consumer demand for different amounts at every price

elastic: type of elasticity in which a change in the independent variable (usually price) results in a larger change in the dependent variable. (usually quantity demanded or supplied)

inelastic: type of elasticity where the percentage change in the independent variable ( usually price) results in a larger change in the dependent variable( usually quantity demanded or supplied).

unit elastic: elasticity where a change in the independent variable( usually price) causes a less than proportionate change in the dependent variable. ( quantity demanded or supplied).

technical: related to a particular subject such as art, science or trade.

Adequate: just enough to satisfy a requirement.