ECON 1BB3 Lecture Notes - Ceteris Paribus, Demand Curve

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Law of demand: other things equal (ceteris paribus), the quantity demanded of a good falls as the price of the good rises. Shifts in demand (change in demand_ are caused by a chance in anything other than price) Movement along the demand curve (change in quantity demanded) is a caused by a change in price) If demand increases, the curve shifts out (--- ) If demand decreases, the curve shifts in ( ---) Quantity supplied (q^s): the amount of a good that sellers are willing and able to sell. The variables that influence how much sellers want to sell are: price, input prices, technology, expectations. Law of supply: other things equal (ceteris paribus) the quantity supplied of a good rises as the price of the good rises. Market supply: the sum of individual supply curves (see sheet for example) Shifts in supply (change in supply_ are caused by a change in anything other than price.