| A | B |
|---|
| demand schedule | a chart showing the various quantities demanded of a product at all prices |
| demand curve | a graph showing the quantity demanded of a product at different prices in the market |
| unit elastic | slope of demand curve equals one |
| demand elasticity | the measure of how a change in the price of a product causes a change in the quantity demanded of a product |
| law of Demand | the quantity demanded of a product varies inversely with its price |
| inelastic demand | slope of demand curve is greater than one |
| elastic demand | slope of demand curve is less than one |
| total product | all of the output produced by a firm |
| production function | the relationship between output changes and changes in a single input |
| marginal product | the extra output generated by the addition of one more unit of a variable input |
| marginal utility per dollar | marginal utility divided by the amount spent |
| marginal utility | new total utility minus old total utility |
| demand | the desire, ability, and willingness to buy a product |
| market demand curve | demand curve showing the total quantities demanded by everyone interested in buying a product |
| diminishing marginal utility | the reduction in the extra satisfaction we get from buying another unit of a product |
| change in quantity demanded | movement along the demand curve due to a change in price |
| change in demand | change in the quantity demanded without a change in the price |
| substitute | a product that can be used in place of another produce |
| complement | a product that is effected by the change in price of another product |
