Chapter 4: Demand Key Terms

A relation showing the quantities of a good that consumers are willing and able to buy per period at various prices (other things constant)

• Law of Demand

• Demand

• Utility

• Market Demand

The quantity of a good demanded per period relates inversely to its price (other things constant)

• Demand

• Law of Supply

• Market Demand

• Law of Demand

The change in total utility resulting from one-unit change in consumption of a good.

• Law of Diminishing Marginal Utility

• Marginal Utility

• Marginal

• Utility

The more of a good an individual consumes per period (other things constant) the smaller the marginal utility of each additional unit consumed.

• Marginal Utility

• Law of Demand

• Law of Diminishing Marginal Utility

• Law of Supply

A curve or line showing the quantities of a particular good demanded at various prices during a given period of time (other things constant)

• Demand Curve

• Demand Line

• Demand

• Opportunity

The amount demanded at a particular price

• Law of Demand

• Marginal Utility

• Quantity Demanded

• Elasticity of Demand

The demand of an individual consumer

• Individual Wants

• Individual Demand

• Individual Supply

• Individual Needs

The sum of the individual demands of all consumers in the market.

• Total Demand

• Summative Demand

• Quantity Demanded

• Market Demand

Measures how responsive quantity demanded is to a price change; the percent change in quantity demanded divided by the percent change in price.

• Elasticity of Demand

• Shift of a Demand Curve

• Elasticity of Supply

• Marginal Utility

Price multiplied by the quantity demanded at that price

• Total Expenses

• Total Demand

• Total Revenue

• Total Supply