| A | B |
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| 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 | the amount of a good or service that a consumer is willing and able to buy at each particular price during a given time period |
| law of demand | principle that all things being equal, a comsumer will purchase (demand) more of a good/service at a lower price than at a higher price |
| income effect | effect a change in an item price has on the consumers ability to purchase |
| purchasing power | amount of income I have to buy goods/services |
| substitution effect | consumers tendency to substitute a lower price good/service for a higher priced good/service |
| diminishing marginal utility | decrease in consumers usefulness of a good/service as more units are consumed |
| demand schedle | a schedule that lists the quantity of goods that consumers are willing and able to buy at a series of possible prices |
| demand curve | plots the relationship of price and a product on a graph |
| determinant of demand | cause D curve to shift |
| substitute good | replacing one goods/services with (similiar goods) another |
| complementary good | Goods/services that go together (Ex. paint & brushes) |
| elasticity of demand | the degree to which changes in a good's price affect the quanitity demanded by consumers |
| elastic demand | small change in price causes a major, opposite change in quantity of demand |
| inelastic demand | change in price = limited to NO change in quantity |
| total revenue | total income that a business receives from selling its products |
