F A product that is very responsive to change in price is considered elastic demand. Super Bowl tickets are a good example of highly inelastic demand. Price Elasticity does not affect total revenue. F If the elasticity of demand is greater than 1, a price increase will Increase total revenue. F In the very short term, almost all products/service have relatively inelastic demand. Over time, substitutes can be found. F Utility analysis is analysis of consumer decision-making based on utility (satisfaction) maximization. A Util is the slang term for a unit of economic energy. Marginal is the lesser amount of anythingcost, revenue, output. Total utility is the total amount of satisfaction from all units purchased. F Marginal Utility is the incremental or extra satisfaction from each unit purchased. F The Law of Diminishing Marginal Utility suggests that as an individual consumes more of a particular commodity, the rate at which the total increases, will diminish as more is consumed. F For the Firm, the long term is the period oftime where at least one resource cannot be varied. F For the consumer, the short term is the period of time where alternatives are readily available. Total Fixed Costs are directly affected by output production. Variable Costs, Fixed Costs and Taxes equal Total Costs