Demand Wrap Up

Part 1

• Utility- The usefulness that a good/service can provide to the consumer
• Computers nowadays have a major utility in our society

• Complementary Demand- When the demand for a good goes up, the item that goes well with it will go up in demand as well
• Rice, teriyaki sauce, and any type of meat are complementary items

• Substitute Demand- When a good becomes scarce or too expensive, a product that can replace it easier will go up in demand
• Soy milk would be in substitute demand if milk were to become scarce

• Elastic Demand- A good or service that is easily replaced 
• Tofu is elastic for people who don't eat meat.

• Inelastic Demand- A good or service that is not easily replaced. 
• Clothes would be a item that would be considered inelastic

Part 2

• Elastic

• Inelastic

Part 3

• Increase in Demand

 

• Decrease in Demand