Demand Wrap Up

DEMAND WRAP UP

PART 1

Utility- the amount of satisfaction a good provides. An example of a utility is Dutch Bros. because it provides energy and satisfy's ones sweet tooth.

Complementary Demand-  a good or service that is paired with another with the same demand. An example of a complementary demand is yoga pants and a yoga mat. They are complementary because you wear yoga pants and use a yoga mat in order to do yoga.

                                           

Substitute Demand- A good or service that satisfy's the same need that another good or service does. An example of Substitute Demand is Nordstrom and Macy's. Nordstrom is more expensive than Macy's but they sell very similar things. 

                                      

Elastic Demand- When the price changes of a good so does the demand. For example, name brand cereal is an elastic demand because when the price rises people stop buying and going for store name.

                                                                    

Inelastic Demand- Even when the prices change the demand remains the same because of its utility. An example of Inelastic Demand is greek yogurt, even if the price rose I would still buy greek yogurt.

                                                           

PART 2