| Question | Answer |
| Principle of diminishing marginal utility | People tend to receive less and less additional satisfaction from any good or service as they obtain more and more of it during a specific period of time.
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Marginal utility curve | a graphic representation of the marginal utility schedule
| Demand | A willingness of consumers to purchase a product, and also as their act of purchasing it.
| Law of demand | Everything else being held constant, the lower the price charged for a good or service, the greater the quantity of it people will demand, and the higher the price, the lower the quantity they will demand.
| Demand schedule | A table listing various quantities demanded at various prices.
| Demand curve | expands the information int an infinite number of points.
| Change in quantity demanded | Whenever a change in price causes a change in the number of items demanded.
| Change in demand | When a demand curve shifts
| Increase in demand | A rightward shift
| Decrease in demand | A leftward shift
| Four conditions that may cause a change in the demand for that product. | 1. A change in people's income 2. A change in the price of the related goods 3. A change in the people's tastes and preferences. 4. A change in the people's expectations.
| Normal goods | Goods that experience an increase in demand because of an increase in consumers' incomes.
| Inferior goods | Goods the experience a decrease in demand as people's incomes increase.
| Substitute goods | Goods that households may use in place of others.
| Complementary goods | Goods that are usually purchased or used together. |
