Chapter 20

Question 1

Demand

Answer 1

The desire , or willingness , && ability to buy a good or service

Question 2

Demand schedule

Answer 2

A table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices

Question 3

Demand curve

Answer 3

A graph that shows the amount of product that would be bought at all the possible prices in a market

Question 4

Law of demand

Answer 4

An economic principle that states that quantity demand && price move in the opposite direction

Question 5

Market demand

Answer 5

Total demand of all consumers for their product or service

Question 6

Utility

Answer 6

Pleasure , usefulness , or satisfaction people get from using a product

Question 7

Diminishing marginal utility

Answer 7

The principle that people’s additional satisfaction, or their marginal utility , tend to go down as more && more units are consumed

Question 8

Substitutes

Answer 8

Competing products in which one can be used in place of another

Question 9

Complements

Answer 9

Products that are used together

Question 10

Demand elasticity

Answer 10

The extent to which a change in price causes a change in the quantity demanded