Demand represents the economic expression of the desire and the ability to pay for goods and services. It is distinct from mere need or desire as it encapsulates the willingness to exchange value for varying amounts of goods or services, depending on the price asked.
A fundamental characteristic of the demand for most goods and services, resulting in lower quantities demanded as the price increases, producing a curve that slopes downward on a graph.
Inelastic supply and demand refer to situations where the quantity supplied or demanded of a good or service changes very little in response to changes in its price. This concept is crucial in economics as it affects pricing, revenue, and market equilibrium.
Price elasticity is a measure of the responsiveness of the quantity demanded or supplied of a good to changes in its price. It helps businesses and economists understand the impact of price changes on supply and demand.
Price elasticity measures the sensitivity of the quantity demanded of a good to a change in its price. It helps determine how changes in price affect total expenditure on that good in the market.
Substitution Law is an economic proposition stating that no good is absolutely irreplaceable; at some set of prices, consumers will opt for substitute goods.
Unitary elasticity refers to a situation in economics where a change in the market price of a good results in no change in the total amount spent for the good within the market.
