BSNS108 Lecture Notes - Demand Curve
20 Jan 2017
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We want to show the quantity of a good that potential buyers are willing to purchase. Its: reliability, durability, insurance costs, fuel economy, expected life, safety, repair costs, size, comfort, color, engine size . Purchase price of other cars you might buy instead, price of other forms of transportation (e. g. bus, bicycle etc. ) Demand - for a fixed set of other determinants vary only price and observe how quantity demanded responds. We never refer to one point on a demand curve as demand - one point on a demand curve is a quantity demanded. How we represent changes in the other demand determinants. Suppose the population of london was 400,000 but everything else in the d0 list was the same. We could call the new list of other demand determinants d1 . Quantity demanded - the amount of a particular good that people are willing to buy for a single price and a certain set of other demand determinants.
