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Complementary goods
Goods that tend to be used together.
Demand
Various quantities of a good or service that consumers are willing and able to buy at different possible prices during a particular time period, ceteris paribus.
Inferior goods
A good whose demand decreases as consumer income increases.
Law of Diminishing Marginal Utility
As more of a good is consumed, the additional satisfaction (marginal utility) gained from each extra unit decreases, and so consumers will only buy more of the good if its price falls.
Marginal utility
The satisfaction obtained from consuming one more unit of a good or service.
Market
Any arrangement that connects buyers and sellers, enabling them to carry out an exchange.
Non-Price Determinants of Demand
Factors, other than price, that can affect the demand of consumers and shift the demand curve.
Normal goods
A good whose demand increases as consumer income increases.
Substitute goods
Goods that satisfy a similar need.
The Law of Demand
The law of demand states that, as the price of a good increases, the quantity demanded decreases, ceteris paribus.
Utility
Utility is the satisfaction that a consumer receives by consuming a good/service.