Demand Wrap Up

Part 1:

Utility:
- The ability for a good or service to be useful to the consumer.
- The utility of coffee would be giving the consumer more energy.

Complementary Demand:
- Products that increase or decrease the demand for another product.
- Soccer balls and soccer cleats are an example of a complementary demand.

Substitute Demand:
- Products that compete against each other that can be used instead of the other.
- Instead of drinking coffee, consumers could just go to bed earlier to get enough energy for the day.














Elastic Demand:
- Demand for the product is changed drastically when the price changes.
- If all coffee drinks suddenly rose to $10 a cup, then consumers would stop demanding it.

Inelastic Demand:
- Demand for the product does not change drastically when the price changes.
- If the price of gas goes up, consumers have no choice but to demand it because they need it.


Part 2:

Elastic Demand Schedule:

$	#D	TR ($)
20	800	16,000
30	120	3,600
40	80	3,200
50	3	150
60	1	60

Inelastic Demand Schedule:

$	#D	TR ($)
1.50	150	225
3.00	125	375
4.50	100	450
6.50	75	487.50
9.00	60	540

Part 3:

Increase:

$	#D	D1
1.50	150	155
3.00	125	130
4.50	100	105
6.50	75	80
9.00	60	65

Decrease: 

$	#D	D1
1.50	150	140
3.00	125	115
4.50	100	90
6.50	75	65
9.00	60	50