| A | B |
|---|
| Demand | The amount of a good or service that a consumer is willing and able to buy at various possible prices during a given time period. |
| Quantity demanded | Amount of a good or service that a consumer is willing and able to buy at each particular price during a period of time. |
| Law of Demand | An increase in a good’s price cause a decrease in the quantity demanded and a decrease in price causes an increase in demand. |
| Purchasing Power | The amount of money or income that people have available to spend on goods and services. |
| Income effect | Any increase or decrease in a consumer’s purchasing power caused by a change in price. |
| Substitution Effect | Tendency of consumers to substitute a similar or lower-priced product for another product that is relatively more expensive. |
| Diminishing marginal utility | As more units of a product are consumed, the satisfaction received from consuming each additional unit declines. |
| Demand schedule | Lists the quantity of goods that consumers are willing and able to buy at a series of possible prices. |
| Demand Curve | Another way to show the relationship between price and quantity demanded. |
| Determinants of Demand | Factors that can shift the factors of demand |
| Substitute Goods | lower priced goods |
| Complementary goods | goods that are commonly used with other goods. |
| Elasticity of Demand | The degree to which changes in price affect demand. |
| Elastic Demand | Exists when a small change in price causes a major change in demand. |
| Inelastic Demand | When a change in price has little impact on demand. |
| Total Revenue | Total receipts or income from selling products. |
