Chapter 4 - Demand

combination of desire, ability, and willingness to buy a product

• demand
• change in demand
• complements
• demand curve
• demand elasticity

graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time

• demand curve
• change in demand
• complements
• demand
• demand elasticity

rule stating that more will be demanded at lower prices and less at higher prices

• Law of Demand
• change in demand
• complements
• demand
• demand curve

satisfaction or usefulness obtained from acquiring one more unit of a product

• marginal utility
• change in demand
• complements
• demand
• demand curve

movement along the demand curve showing that a different quantity is purchased in response to a change in price

• change in quantity demanded
• complements
• demand
• demand curve
• demand elasticity

consumer demand for different amounts at every price, causing the demand curve to shift to the left or right

• change in demand
• complements
• demand
• demand curve
• demand elasticity

products related in such a way that an increased in the price of one reduces the demand for the other

• complements
• change in demand
• demand
• demand curve
• demand elasticity

type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)

• inelastic
• change in demand
• complements
• demand
• demand curve

What are the characteristics of demand?

• the desire and ability to buy a product
• the willingness to buy a product
• the willingness and desire to buy a product
• the desire, ability, and willingness to buy a product

Changes in quantity demanded and changes in price have a(n) _________ relationship

• indirect
• positive
• inverse
• neutral