Chapter 20 Flashcards
demand
refers to the desire, willingness, and ability to buy a good or service
refers to the desire, willingness, and ability to buy a good or service
demand
demand schedule
a table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices
a table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices
demand schedule
demand curve
a graph that shows the amount of a product that would be bought at all possible prices in the market
a graph that shows the amount of a product that would be bought at all possible prices in the market
demand curve
Law of Demand states that:
quantity demanded and price move in opposite directions
quantity demanded and price move in opposite directions
Law of Demand
market demand
the total demand of all consumers for their product or service
the total demand of all consumers for their product or service
market demand
utility
the pleasure, usefulness, or satisfaction we get from using the product
the pleasure, usefulness, or satisfaction we get from using the product
utility
diminishing marginal utility
the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
diminishing marginal utility
substitute(s)
competing products (products that consumers can use one in place of the other)
competing products (products that consumers can use one in place of the other)
substitute(s)
complement(s)
products that are used together (ex. computers and software)
products that are used together (ex. computers and software)
complement(s)
demand elasticity
the extent to which a change in price causes a change in the quantity demanded
the extent to which a change in price causes a change in the quantity demanded
demand elasticity
