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Demand

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Term
Definition
demand   the combination of quantities someone would be willing and able to buy at a given moment  
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incentive   a motivating influence that causes someone to buy more or less of an item; usually related to price  
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marginal utility   the extra usefulness or additional satisfaction a person gets from acquiring one more unit of a product  
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income effect   the change in quantity demanded caused by a change in a consumer's pay and the price of a product  
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substitution effect   the change in quantity demanded caused by a change in the price of a good relative to other goods  
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substitutes   competing products that can be used in place of another product; the increase in price of one product leads to higher demand of the other  
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compements   products that increase the use of other products; the increase in the price of a product reduces demand for its complement  
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elasticity   the measure of responsiveness that tells how a dependent variable like quantity demanded responds to changes in independent variables like price  
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ineleastic   the percentage change in the independent variable (price) causes a less than proportionate change in the dependent variable (quantity demanded)  
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