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Chapter 4 - Demand
For Economics course using the Glencoe textbook
19
Economics
12th Grade
06/23/2012

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Term
Demand
Definition
Combination of desire,ability and willingness to buy a product.
Term
Microeconomics
Definition
Part of economics that sudies small units, such as individuals and firms.
Term
Demand Schedule
Definition
A table that lists how much of a product consumers will buy at all possible prices.
Term
Marginal Utility
Definition
Additional satisfaction or usefullness a consumer gets from having one more unit of a product.
Term
Diminishing Marginal Utility
Definition
Decrease in satisfaction or usefullness from having one or more unit of the same product.
Term
Change in Quantity Demanded
Definition
Movement along the demand curve showing that the amount someone is willing to purchase changes when the price change.
Term
Income Effect
Definition
That part of a change in quantity of demanded due to a change in the buyer's real income when a price changes.
Term
Substitution Effect
Definition
The part of a change in quantity demanded due to a price change that makes other products more or less costly.
Term
Complements
Definition
Products that increase the use of other products.
Term
Demand Elasticity 
Definition
A measure that shows how a change in quantity demanded responds to a change in price.
Term
Elastic
Definition
Type of elasticity where a change in price causes a relatively larger change in quantity demanded.
Term
Inelastic
Definition
Type of elasticity where a change in price causes a relatively smaller change in quantity demanded.
Term
Unit Elastic
Definition
Type of elasticity where a change causes a proportional change in quantity demanded.
Term
Substitutes
Definition
Competing products that can be used in place of one another.
Term
Demand Curve
Definition
A curve that shows the quantities demanded at all possible prices.
Term
Law of Demand
Definition
Rule stating that consumers will buy more of a product at lower prices and less at higher prices.
Term
Change in Demand
Definition
Shift of the demand curve when people buy different amounts at every price.
Term
Elasticity
Definition
A measure of responsiveness that shows how one variable responds to a change in another variable.
Term
Market Demand Curve
Definition
A curve that shows how much of a product all consumers will buy at all possible prices.
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