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demand

the desire to own something and the ability to pay for it

law of demand

consumers buy more of a good when its price decreases and less when its price increases

substitution effect

when consumers react to an increase in a goods price by consuming less of that good and more of other goods

income effect

the change in consumption resulting from a change in real income

demand schedule

a table that lists the quantity of a good a person will buy at each different price

market demand schedule

a table that lists the quantity of a good all consumers in a market will buy at each different price

demand curve

a graphic representation of a demand schedule

ceteris paribus

a Latin phrase that means "all other things held constant"

normal good

a good that consumers demand more of when their incomes increase

complements

two goods that are brought and used together

substitutes

goods used in place of one another

elasticity of demand

describes demand that is not very sensitive to a change in price

inelastic

describes demand that is not very sensitive to a change in price

elastic

describes demand that is very sensitive to a change in price

unitary elastic

describes demand whose elasticity is exactly equal to one

total revenue

the total amount of money a firm receives by selling goods or services

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