What is Demand?
Combination of quantities that someone would be willing and able to buy over a range of possible prices at a given moment ...
Answer: demand.
Movement along the demand curve showing that a different quantity is purchased in response to a change in price ...
Answer: change in quantity demanded.
The extent to which a change in price causes a change in the quantity demanded; demand elasticity has three cases: elastic, inelastic, or unit elastic ...
Answer: demand elasticity.
Additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product ...
Answer: marginal utility.
That portion of a change in quantity demanded caused by a change in a consumer’s income when the price of a product changes ...
Answer: income effect.
Case of demand elasticity where the percentage change in the independent variable (usually price) – causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied) ...
Answer: inelastic.
Graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time ...
Answer: demand curve.
The portion of a change in quantity demanded that is due to a change in the relative price of the good ...
Answer: substitution effect.
Elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied) ...
Answer: unit elastic.
Rule stating that more will be demanded at lower prices and less at higher prices; an inverse relationship between price and quantity demanded ...
Answer: Law of Demand.
Different amounts of a product are demanded at every price, causing the demand curve to shift to the left or to the right ...
Answer: change in demand.
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) ...
Answer: elastic.
Decrease in additional satisfaction or usefulness as additional units of a product are acquired ...
Answer: diminishing marginal utility.
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 ...
Answer: complements.
A measure of responsiveness that tells us how a dependent variable, such as quantity demanded or quantity supplied, responds to a change in an independent variable such as price ...
Answer: elasticity.