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demand
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combination of desire, ability, and willingness to buy a product
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microeconomics
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branch of economic theory that deals with behavior and decision making by small units, such as individuals and firms
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demand schedule
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listing showing the quantity demanded at all possible prices that might prevail in the market at a given time
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demand curve
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graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time
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Law of Demand
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rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded
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market demand curve
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demand curve that shows the quantities demanded by everyone who is interested in purchasing a product
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marginal utility
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satisfaction or usefulness obtained form acquiring one more unit of a product
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diminishing marginal utility
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decreasing satisfaction or usefulness as additional units of a product are acquired
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change in quantity demanded
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movement along the demand curve showing that a different quantity is purchased in response to a change in price
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income effect
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that portion of a change in quantity demanded caused by a change in a consumer's real income when the price of a product changes
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substitution effect
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that portion of a change in quantity demanded due to a change in the relative price of the product
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change in demand
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consumers demand different amounts at every price, causing the demand curve to shift to the left or the right
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substitutes
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competing products that can be used in place of one another; products related in such a way that an increase in the price of one increases the demand for the other
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complements
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products that increase the value of other products; products related in such a way that an increase in the price of one reduces the demand for both
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elasticity
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a measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price
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demand elasticity
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measure of responsiveness relating change in quantity demanded (dependent variable) to a change in price (independent variable)
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elastic
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type of elasticity where the percentage change in the independent variable (usually price) causes a more than proportionate change in the dependent variable (usually quantity demanded or supplied)
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inelastic
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type of elasticity where the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
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unit elastic
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elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied)
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illustrate
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to clarify, as by use of examples or comparisons
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concept
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a general idea derived or inferred from specific instances or occurrences
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analyze
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to separate into parts or basic principles so as to determine the nature of the whole; examine methodically
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transfer
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to convey or cause to pass from one place, person, or thing to another
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similar
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related in appearance or nature; alike though not identical
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assume
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to take upon oneself: assume responsibility; assume another's debts; to undertake the duties of (an office)
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income
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the amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments
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substitute
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one that takes the place of another; a replacement
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complements
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something that completes, makes up a whole, or brings to perfection; the quantity or number needed to make up a whole
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identify
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to establish the identity of; to ascertain the origin, nature, or definitive characteristics of
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Keith Clinkscales
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founder of the hip hop magazine, Blaze, focusing on rap music and fashion; targets readers ages 12-24
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Oprah Winfrey
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one of the richest and most powerful women in America; the 3rd woman in history to own a major television and film studio; with an annual income of about $100 million, she is poised to become the country's first African American billionaire
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McDonald's
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opened its first restaurant in Des Plaines, Illinois, in 1955; in 1967 it opened its first restaurants in cities in other countries; today, the company operates nearly 25,000 McDonald's restaurants in 115 countries on 6 continents
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Noumenon Corporation
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software producing company in the 1980's who 'tested' the market to determine the price of software; they raised software prices in increment of $20 all the way up to $210; they found that total revenue was maximized at a price of $90
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Jeff Bezos
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founder of Amazon.com; debuted in the Web in July 1995
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