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17 Cards in this Set
- Front
- Back
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Demand |
The desire, ability and willingness to buy a product |
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Microeconomics |
The area of economics that deals with behavior and decision making by small units such as individual terms |
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Demand schedule |
A listing that shows the various quantities demanded of particular product |
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Law of demand |
When the price goes up the quantity demand goes down. When the price goes down quantity demand goes up |
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Market demand curve |
The demand curve that shows the quantity demanded by everyone who is interested in purchasing the product |
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Marginal utility |
The extra satisfaction a person gets from using acquiring word using one more unit of product |
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Diminishing marginal unit |
The extra satisfaction or usefulness we get from using additional quantities of the product begins to diminish |
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Change in quantity demanded |
A movement along the demand curve that shows a change in the quantity of the product purchased in response to change in the price |
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Income effect |
The change in the quantity demanded because of the change in price alters consumers real income |
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Substitution effect |
The change in quantity demanded because of the change in the relative price of the product |
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Substitutes |
Products that can be used in place of other products |
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Complement |
Products that increase the value of other products |
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Elasticity |
The measure of responsiveness that tells us how dependent variables such as quantity response to a change in an independent variable |
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Demand elasticity |
The extent to which a change in price causes a change in quantity demanded |
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Elastic |
When I given change in price causes a relatively large change in quantity demanded |
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Unit elastic |
A given change in price causes a proportional change in quantity demanded |
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Change in demand |
When into mine curve shifts because people are now willing to buy different amounts of the products at the same prices |
