ECON 2020 Lecture Notes - Lecture 2: Demand Curve, Market Analysis, Sildenafil
Document Summary
In product markets, households demand goods and services which are supplied by firms in exchange for money. Qd of a good: line that shows the maximum consumers are willing to pay for any quantity, change in demand, shift of the entire curve to the left or right, left=descrease in. D: factors that shift the demand curve. Income: normal goods-goods for which income and demand move together. Inferior goods-goods for which income and demand move opposite: ex. As the baby boomers retire, demand increases for social security, viagra, etc: tastes and preferences, ex. 2: left=descrease in s, right=increase in s, factors that shift the supply curve. Input prices and supply move opposite: ex. 6p=18 p= (don"t forget to find quantity too, and after solving, plug. back into both top equations to check work: price rationing, allocation of goods among consumers using prices, economists believe price rationing is the most efficient method of allocating goods and services.