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Glossary

  1. 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.
  2. Demand Schedule: A table that shows the relationship between the price of the good and the quantity demanded of that good. The labels in the schedule or table will be the exact labels you will use when constructing the demand graph.
  3. Demand Curve: A curve that shows the relationship between the price of a good and the quantity demanded of a good. The demand curve is DOWNWARD sloping to the right. Remember…demand goes down. .
  4. Law of Demand: A law that states that, other things equal, the quantity demanded of a good falls when the price of the good rises. The relationship between price and quantity demanded is therefore INVERSE.
  5. Marginal Utility: The extra usefulness/satisfaction one gets from getting or using one more unit of a product.
  6. Diminishing Marginal Utility: The satisfaction we gain from buying a product lessens as we buy more of the same product.