demand
the amount of goods and services people are willing and able to purchase at various prices during a specific time period
law of demand
an increase in prices causes a decrease in quantity demanded; a decrease in price causes an increase in quantity demanded
utility
amount of satisfaction a person receives from a good or service
elasticity of demand
a measure of how a consumer reacts to a change in price
demand schedule
a table that lists the quantity of a good a person will buy at various prices in the market
demand curve
a graphic representation of a demand schedule
normal good
a good that consumers demand more of when their income increases
inferior good
a good that consumers demand less of when their income increases
demographics
statistical characteristics of population or population segments
inelastic demand
demand that is not very sensitive to price changes; a small change in price causes a small change in quantity demanded
elastic demand
demand that is very sensitive to price changes; a small change in price causes a big change in quantity demanded
unitary elasticity
demand whose elasticity is exactly equal to 1
total revenue
the amount of money a company receives from selling goods or services; price x quantity
complements
two goods that are bought and used together
substitutes
goods that are used in place of one another