| A | B |
|---|
| Demand | Determined by which and what quantity of particular goods and services consumers want, have the ability to afford, and are willing to buy at a particular time. |
| Elasticity | A measure of the degree of change in demand due to a change in prices. |
| Inelastic demand | When a change in price has a small effect on demand |
| Elastic demand | When a change in price has a large effect on demand |
| Marginal utility | The satisfaction effect or usefulness of purchasing a unit or item of a good or service |
| Diminishing marginal utility | When satisfaction or usefulness begins to diminish |
| Profit motive | When businesses attempt to keep expenses at a minimum while increasing income from sales of goods or services. |
| Substitute Good | An item purchased instead of another good (usually because of price) |
| Complementary Good | An item purchased because of the purchase of another good (i.e., buying hot dog buns because you bought hot dogs) |
| Income effect | The result of the buying power of the consumer |
| Equilibrium Price | The price that businesses are willilng to sell for and the price consumers are willing to pay. |
| Market Supply | The amount of raw materials and resources available at a given time. |
