Demand Wrap Up!

PART ONE

Utility: A term referring to the total satisfaction received from consuming a good or service
"John had a brilliant idea, he would create a product that would provide consumers with the ability to talk to people from different rooms and he would call it the cell phone!

 

Complementary Demand: Demand for a product that is generated by a product this is different but related in one way or another.

"The peanut butter was all of the sudden in very high demand as new flavors of jam became popular with a majority of the stores consumers."

Substitute Demand: A product or service that is able to satisfy the need or want of a consumer the same way another product or service is able to.
"The store was all out of pepsi, but she didn't mind buying coca cola instead because to her, there really is no difference."

Elastic Demand: Explains a product that has a price effect that is very strong. This means that if it's price were to change in either direction, consumers would either buy a ton of it, or stop buying it all together.
"They loved attending the theater, but when ticket prices shot up to $19.00 per person, they stopped going all together."

Inelastic Demand: Explains a product that has a weak price effect. This means that if the price were to change, the demand wouldn't change as well because of the necessity of the item.
"The price of her diabetes medicine rose dramatically but as it is vital to her health, she continued to purchase it."

PART TWO

PART 3: