BIOCH498 Lecture Notes - Lecture 13: Nicotine, Demand Curve
13 Jun 2015
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Trust must be present between buyer and seller. Self interest - individuals pursue their own self interest, buying and selling what seems best for them. Market prices and quantities - prices and quantities are determined in open markets which would be sellers compete to sell their products to would be buyers. Inner flow = physical flow (services, goods, and labor) Scarcity forces us to make choices in a market economy. Qo x= the quantity the consumers are willing to buy. As the price of a commodity or service increases, its quantity demanded decreases (not a substitute - substitute curve is more outwards) As the price of a commodity or service decreases, its quantity demanded increases. Ceteris paribus - everything in the world is held constant except price of the product and how much you are willing to pay to purchase them. For instance, no matter how much gasoline goes up in price, we will still pay for it.
