ECON 208 Lecture Notes - Lecture 4: Takers, Ceteris Paribus, Demand Curve

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: Wendy Dickinson

Document Summary

The total amount that consumers desire to purchase in some time period of a product. Quantity bought or exchanged refers to actual purchases. Quantity demanded is a ow as opposed to a stock. Qd = f(p, po, y, ydist, tastes/prefs, expectations, pop) P is the product"s own price (negatively related) When you change the price of the good itself holding all other prices constant then the opportunity cost changes. If the price falls, the opportunity cost goes down, so you want more of the good. Normal goods have a positive relationship with demand. Inferior goods have a negative relationship with demand. Low income households have different needs and desires than higher-income households. What may be a normal good for one set may be an inferior good for another. Consumer industries try to gear people towards consuming certain goods and services. Expectations about the future such as future prices. The more people who want the good the bigger the demand.