Demand vocabulary

Complementary Goods

• Products that are often used together.

• Products that can replace each other.

• Products that are sold at a discount.

• Products that are only used in specific seasons.

Supply

• The total amount of a product available in the market.

• The quantity of a product that producers are willing and able to sell at different prices.

• The demand for a product at various price levels.

• The price at which a product is sold in the market.

Substitute

• A product that is always more expensive than the original.

• A good or service that can replace another good or service.

• A type of good that has no alternatives.

• A service that is only available in limited quantities.

Law of Demand

• Consumers buy more of a good when its price decreases and less when its price increases.

• Consumers buy less of a good when its price decreases and more when its price increases.

• Consumers buy the same amount of a good regardless of its price changes.

• Consumers only buy a good when its price is at a certain level.

Diminishing Marginal Utility

• Each additional unit of a product is less satisfying than the one before.

• Each additional unit of a product is more satisfying than the one before.

• The total satisfaction increases with each additional unit consumed.

• Satisfaction remains constant with each additional unit consumed.

Elasticity of Demand

• Changeability of amount demanded when price changes.

• The total quantity of goods available in the market.

• The relationship between supply and demand.

• The fixed amount of goods that consumers will buy regardless of price.

Market Demand

• Total demand in the market at a given time.

• The demand for a specific product in a single store.

• The total supply of goods available in the market.

• The demand from individual consumers only.

Quantity Demanded

• The total amount of goods available for sale at a given price.

• The amount of a good or service consumers are willing to buy at a specific price.

• The quantity of goods that producers are willing to sell at a specific price.

• The amount of a good or service that is not sold due to high prices.