Part 1
1. Utility
Definition: Ability of a good or service to be of use or give satisfaction to someone
Example: Coffee has the utility of giving a person energy and usually will make them happier due to enjoying a delicious beverage
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2. Complementary demand
Definition: The demand of an item that changes equally with an item that pairs with it
Example: When the sales of hot dog go up due to a sale, the sales of hot dog buns will go up as well
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3. Substitute demand
Definition: The demand for an object will have an inverse effect of a substitute item (items that have same utility) if the price goes up or down
Example: If the price of Cheerios goes up, then the demand for frosted flakes would increase due to the similar utility
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4. Elastic demand
Definition: Demand that will be effected greatly by a change in price
Example: As the price of cookies goes up, the demand will go down because the cookies are an unnecessary good
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5. Inelastic demand
Definition: Demand that will not be effected by a change in price
Example: If the price of shampoo were to increase, the demand would remain static because shampoo is necessary to stay clean
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Part 2
A. Elastic Demand
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B. Inelastic Demand
Part 3
A. Increase in Demand
B. Decrease in Demand
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