ECON201 Lecture Notes - Lecture 1: Demand Curve, Avocado

• School: University of Waterloo
• Department: Economics
• Course: ECON201
• Professor: Predrag Rajsic

Document Summary

Introduction into the economic way of thinking: supply and demand. Models are like maps or a blueprint. Some details are not important for our purposes. What is important depends on the problem. Key pieces of information in economic models. At what prices do consumers want to buy something. At what prices do producers want to sell. What factors effect our decisions to buy or sell. Can we find a short, concise way of representing our models. Potential consumers decide how much of a good or services to buy on the basis of its price and many other factors including: Prices of other goods (complements or substitutes) Substitute a product you view similar to identical to the one you are buying. Complement a product you consume at the same time as the one you are buying. Quantity demanded the amount of a good that consumers are willing to buy at a given price, holding constant the other factors that influence purchases.