| A | B |
|---|
| inelastic demand | Exists when a change in a good's price has little impact on the quantity demanded |
| utility | In economic terms, the amount of satisfaction that an individual receives from consuming a product |
| determinants of demand | Nonprice factors that help determine demand |
| purchasing power | Amount of money individuals have at their disposal to spend on goods and services |
| demand schedule | Table that lists the quantity of goods that consumers are willing and able to buy at a series of possible prices |
| law of demand | States that an increase in price causes a decrease in the quantity demanded, while a decrease in prices causes an increase in the quantity demanded |
| complementary goods | Goods that are commonly used with other goods |
| substitute goods | Goods that can be used to replace purchases of other goods when prices rise |
| elastic demand | Exists when a small increase in a good's price causes a major decrease in the quantity demanded |
| demand | Amount of a good or service a consumer is willing and able to buy at various prices during a given period of time |
| demand curve | Plots the information from a demand schedule onto a graph |
| law of diminishing marginal utility | States that as more units of a product are consumed, the utility received from consuming each additional unit declines |
