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Side A ------ Side B
What is Demand? ------ Demand is the amount of good or services a consumer is WILLING and ABLE to buy at VARIOUS prices during a given time period
What is QUANTITY Demanded? ------ The amount of a good or service that a consumer is willing and able to buy at each PARTICULAR price during a given time period
What does the law of demand infer? ------ An increase in the price of a good will decrease the quantity demanded. (inverse relationship) when P goes up, QD goes down.
What is diminishing marginal utility? ------ The natural decrease in the utility of a good or service as more of it is consumed. 
What are the determinants of demand? (5) ------ 1) Consumer taste and preferences
2) Market size
3) Income
4) Prices of related goods
5) Consumer expectations
What are three components of Market Size? ------ 1) Business decisions
2) Government decisions 
3) New technology 
What is ELASTIC demand? ------ Small change in price will cause relatively large change in Quantity demanded
Three things that cause ELASTIC demand... ------ 1) Product is not a necessity
2) Has many readily available substitutes
3) Product's cost is large portion of income.
What does an ELASTIC curve look like almost? ------ horizontal
Disposable Income vs. Purchasing Power ------ Disposable income is money left after all taxes are taken out, while purchasing power is the ability to purchase goods and services.

Side A ------ Side B
What is Demand? ------ Demand is the amount of good or services a consumer is WILLING and ABLE to buy at VARIOUS prices during a given time period
What is QUANTITY Demanded? ------ The amount of a good or service that a consumer is willing and able to buy at each PARTICULAR price during a given time period
What does the law of demand infer? ------ An increase in the price of a good will decrease the quantity demanded. (inverse relationship) when P goes up, QD goes down.
What is diminishing marginal utility? ------ The natural decrease in the utility of a good or service as more of it is consumed. 
What are the determinants of demand? (5) ------ 1) Consumer taste and preferences
2) Market size
3) Income
4) Prices of related goods
5) Consumer expectations
What are three components of Market Size? ------ 1) Business decisions
2) Government decisions 
3) New technology 
What is ELASTIC demand? ------ Small change in price will cause relatively large change in Quantity demanded
Three things that cause ELASTIC demand... ------ 1) Product is not a necessity
2) Has many readily available substitutes
3) Product's cost is large portion of income.
What does an ELASTIC curve look like almost? ------ horizontal
Disposable Income vs. Purchasing Power ------ Disposable income is money left after all taxes are taken out, while purchasing power is the ability to purchase goods and services.