ECON 200 Lecture 9: Econ 200,University of Arizona,Lecture(p9)
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ECON 200 Full Course Notes
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Change in quantity demand - movement along same curve (price) Change in demand - curves shifts to the left or right (anything besides price) Determinate of demand (shift) 1. tastes/preferences 2. prices of related goods (complements or substitutes) 3. income 4. consumer s expectations of the future. Law of supply - positive correlation between price and quantity supplied. How much sellers want to sell depends on the price. Supply function is an equation which shows the relationship between the price and quantity supplied. Change in quantity supplied (price) cause charge along the same curve. Change in supply - supply curve shifts depending on factors. Difference between price of good and cost per unit = profit. Shifts bc 1. increased cost of production 2. technology 3. sellers expectations of the future 4. number of producers (more produce - supply increases) Quantity supplied and quantity demanded equal out.