Vocabulary

Demand

The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

Demand schedule

A list that illustrates the possible quantities demanded of a good/service at the prices that might work in the market at a particular time.

 

Individual demand curve

A graph showing the quantity of demand for a certain individual at each price that might be used in the market at a given time; the demand curve slopes downward.

 

Law of Demand

The quantity demanded of a good/service varies inversely with its price.

 

Market demand curve

The quantities demanded by everyone who is interested in buying a product.

 

Marginal utility

The extra usefulness/satisfaction one gets from getting or using one more unit of a product.

 

Diminishing marginal utility

The satisfaction we gain from buying a product lessens as we buy more of the same product.

 

Change in quantity demanded

Shows a change in the amount of a product purchased when there is a change in price.

 

Change in demand

People buy different amounts of the product at the same prices.