| A | B |
|---|
| Law of Demand | If price goes up, demand goes down. If Price goes down, demand goes up. Usually. |
| Diminishing utility | Amount of satisfaction or usefulness of a product decreases as more and more are consumed. Eventually something is more than we need. |
| Elastic Demand | A change in price DOES affect our demand for it. (affects wants more than needs) |
| Inelastic Demand | A change in price DOESN'T affect demand. (If it's a need, we need it no matter the price). |
| Personal Income | Our total earnings before anything is spent or taken out. |
| Disposal Income | This is the money we have after taxes are taken out. |
| Discretionary Income | This is the money we have left over after taxes, bills and necessities are taken out. |
| Change in Consumers | Concept that changes in an area's population can affect demand. |
| Consumer Expectations | Concept that demand can be affected by what consumers plan for. |
| Consumer Tastes | Concept that the popularity of a product can change its demand higher or lower. |
| Substitute Goods | If the price rises for one good, consumers may buy a cheaper alternative that is similar. |
| Complementary Goods | These are goods that work with another product. Ex: A new phone is released and companies make accessories that fit it. |
| Law of Supply | As the price of something goes up, producers will make more of it, which then lowers the price. And the opposite. |
| Diminishing Returns | This is the idea that you can't just keep increasing supply - eventually it costs the producer more than they will profit from it. |
| Elastic Supply | If the price of something changes, the producer can easily make more or less of it. Also, if there are many alternative products for it. |
| Inelastic Supply | If the price of something goes up, it is hard to increase production, and the price of all alternatives go up also. |
| Supply is elastic | Example: The price of a particular brand goes up, but there are plenty of other brands to go to. Is its supply elastic or inelastic? |
| Supply is inelastic | Example: The price of oil goes up, so all prices at gas stations go up. Is its supply elastic or inelastic? |
| Cost of Resources | Idea that the cost of materials or labor can affect its price. |
