1. Econ Unit 3
Demand

2. Demand
Demand refers to the desire, willingness, and ability to buy a good or service.
The Demand Schedule is a table that lists the quantities of a product or service over a range of possible prices.
According to the law of demand, quantity demanded and price move in opposite directions.

3. Demand
Diminishing marginal utility is indicated by a downward sloping in a demand curve.
A demand curve is a graph that lists prices on the vertical axis and quantities on the horizontal axis.
Companies are interested in the market demand, or the total demand of all consumers for their product or service.

4. Demand Supply and demand work together to set prices.
A knowledge of demand is important for making sound business plans.
Expensive items generally have an elastic demand.

5. Products
Competing products are called substitutes because consumers can use one in place of the other.
Some products are complements, meaning that they are used together.

6. Utility
Utility can is the pleasure, usefulness, or satisfaction a person gets from using a product
Marginal utility is the extra benefits gained from the purchase of a good or service.
Diminishing marginal utility is the principle that additional satisfaction decreases as more units are consumed.

7. Elasticity
Demand Elasticity refers to the extent to which a change in price causes a change in demand.
Demand is elastic when a change in price causes a relatively larger change in quantity demanded.
If a product has inelastic demand, price changes have little effect on the quantity demanded.