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19 Cards in this Set
- Front
- Back
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demand |
desire, ability, and willingness to buy a product |
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microeconomics |
deals with decision making and behavior in small units
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demand schedule |
listing that shows the various quantities demanded of a particular product
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demand curve |
a graph showing the quantity demand at each and every price that might prevail in the market
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law of demand |
the quantity demanded of a good or service varies inversely with its price
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market demand curve |
the demand curve that shows the quantities demanded by everyone who is interested in purchasing that product
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marginal utility |
the extra usefulness or satisfaction a person gets from acquiring one more unit of a product
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diminishing marginal utility |
the extra satisfaction we get from using additional quantities of the product begins to deminish |
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change in quantity demand |
a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price |
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income effect |
the change in quantity demanded because of a change in price that alters consumers real income |
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substitution effect |
change in quantity demanded because of the change in the relative price of the product
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change in demand |
consumers are willing to buy different amounts of the product at the same price |
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substitutes |
products that can be used in place of another product
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complements |
the use of one product increases the use of another |
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elasticity |
a measure of responsiveness that tells us how dependant a variable such as quantity responds to an independant variable such as price |
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demand elasticity |
the extent to which a change in price causes a change in the quantity demand
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elastic |
when a given change in price causes a relatively larger change in quantity demand
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inelastic |
a givin change in price causes a relatively smaller change in quantity demand
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unit elastic |
a given change in price causes a proportional change in quantity demanded |
