Demand Vocabulary

4. Something that motivates or encourages one to act.
5. Includes the desire, willingness and ability to buy the product or service.
6. 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).
9. The extent to which a change in price causes a change in the quantity demanded;
10. A table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices.
12. Occurs when the price of a product or service remains the same, but people decide to buy different amounts of the product/service.
13. Elasticity in which a change in the independent variable (usually price) results in a larger change in the dependent variable (usually quantity demanded or supplied).
14. The branch of economic theory that deals with behavior and decision making by small units, such as people and firms.

1. occurs ALONG the demand curve if there is a price change.
2. Elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied).
3. Decrease in additional satisfaction or usefulness as additional units of a product are acquired.
7. A measure of responsiveness that tells us how a dependent variable, such as quantity demanded or quantity supplied, responds to a change in an independent variable such as price.
8. A graphic representation of the relationship between product price and the quantity of the product demanded.
11. The quantity demanded and price move in opposite directions (people will buy less the more an item costs and vice versa.)