Demand
The desire to own something and the ability to pay for it.
Law of Demand
Consumers will buy more of a good when its price is lower and less when its price is higher.
Substitution Effect
When Consumers react to an increase in a good's price by consuming less of that good and more of a substitute good.
Income Effect
The Change in consumption that result when a price increase causes real income to decline.
Demand Schedule
A table that lists the quantity of a good a person will buy at various prices in a market.
Market Demand Schedule
A table that lists the quantity of a good all consumers in a market will buy at various prices.
Demand Curve
A graphic representation of a demand schedule.
Ceteris Paribus
A Latin phrase that means "all other things held constant.
Normal Good
A good that consumers demand more of when their incomes increase.
Inferior Good
A good that consumers demand less of when their income increase.
Demographics
The statistical characteristics of population, and population segments, especially when used to identify consumer market.
Complements
Two goods that are bought and used together.
Substitutes
Goods that are used in place of one another.
Elasticity Of Demand
A measure of how consumers respond to price changes.
Inelastic
Describes demand that is not very sensitive to price change.
Elastic
Describes demand that is very sensitive to a change in price.
Unitary Elastic
Describes demand whose elasticity is exactly equal to 1.
Total Revenue
The total amount of money a company receives by selling goods or services.