Microeconomics definitions - the concept of utility

• Market 


  A voluntary meeting of buyers and sellers
• Utility 


  A measure of satisfaction that we get from purchasing and consuming a good or service
• Total utility 


  The total utility from a given level of consumption
• Marginal utility 


  The change in satisfaction from consuming an extra unit
• Disutility


  Refers to negative feelings associated with activities, goods and services
• Demand 


  The quantity that purchasers are willing and able to buy at a given price
• Price elasticity of demand (PED)


  The responsiveness of demand after a change in price
• Income elasticity of demand (YED)


  The responsiveness of demand after a change in income
• Supply 


  The quantity of a good or service that a producer is willing and able to supply at a given price
• Price elasticity of supply (PES)


  Measures the relationship the change in quantity supplied and a change in price
• Cross price elasticity (XED) 


  Measures the responsiveness of demand for good X following a change in price of related good Y
• Substitute goods 


  Two alternative goods that could be used for the same purpose
• Complementary goods 


  Products which are bought and used together
• Equilibrium 


  A state of equality or balance between market demand and supply
• Disequilibrium 


  Prices where demand and supply are out of balance or equality