Demand Wrap Up.

Part I

1. Utility- The ability of a good or service to be useful and give satisfaction.

The utility of a cellphone is to keep in contact with other people and take pictures.

2. Complementary Demand- Products that are related to each other, in which an increase or decrease in price affects each other. 

An example of complementary demand is when I go to the store to buy ingredients for cake and have to buy cake mix, frosting, and sprinkles. These products all go together and so if I buy one, I normally buy all of them. 

3. Substitute Demand- Products that can replace an existing item, relates because a decrease in demand of one item, increases the demand of another. 

As the search engine, Bing, decreases in popularity because of faulty results, the substitute demand of Google increases for consumers.

4. Elastic Demand- When a change in price of an item greatly affects the demand of an item.
The demand of fresh fruits and vegetables depends on their price, if the price increases, then the demand decreases. The same is applicable if the price decreases, then more people would be more willing to buy fresh fruits and vegetables. That is elastic demand.

5. Inelastic Demand- When a change in price doesn't affect the demand of an item.

In these modern times, toothpaste always has an inelastic demand because no matter the price, people still need in in their everyday life. 




Part II

Elastic-

Price	Quantity Demanded	Total Revenue
$ 10	100	$ 1,000
$ 20	40	$ 800
$ 30	20	$ 600
$ 40	10	$ 400
$ 50	5	$ 250

Inelastic- 

Price	Quantity Demanded	Total Revenue
$ 10	100	$ 1,000
$ 20	80	$ 1,600
$ 30	75	$ 2,250
$ 40	70	$ 2,800
$ 50	60	$ 3,000

Part III

Increase in Demand-

Price	Quantity Demanded	New Quantity Demanded
$ 10	90	100
$ 20	60	70
$ 30	40	50
$ 40	20	30
$ 50	10	20

Decrease in Demand-

Price	Quantity Demanded	New Quantity Demanded
$ 10	90	70
$ 20	60	50
$ 30	40	30
$ 40	20	10
$ 50	10	5