ECON101 Lecture Notes - Lecture 3: Ceteris Paribus, Ramen, Demand Curve

• School: University of Delaware
• Department: Economics
• Course: ECON101
• Professor: Kievana Haynes

Document Summary

Chapter 3: where prices come from, the interaction of demand and supply. P(cid:396)e(cid:448)iousl(cid:455) the i(cid:374)te(cid:396)a(cid:272)tio(cid:374) of (cid:271)u(cid:455)e(cid:396)s a(cid:374)d selle(cid:396)s i(cid:374) the (cid:373)a(cid:396)ket esta(cid:271)lishes the p(cid:396)i(cid:272)es a(cid:374)d quantity produced of a particular good or the amount of a service offered. The sum of the individual demand of all consumers in the market. ** see notes for demand schedule & demand curve ** ** see notes to show movement of demand curve ** 1. changes in the prices of related goods: substitute goods: goods and services that can be used for the same purpose. These are goods we use in place of another: e(cid:454)a(cid:373)ples: big ma(cid:272) a(cid:374)d whoppe(cid:396), t(cid:396)ai(cid:374) a(cid:374)d (cid:271)us t(cid:396)a(cid:374)spo(cid:396)t, jea(cid:374)s a(cid:374)d khakis. Quantity demand increases because people will want to buy more of it because the price dropped. In the big mac market, no price change. Because of substitute relationship, the(cid:396)e"s a de(cid:373)a(cid:374)d de(cid:272)(cid:396)ease(cid:894)shift to left(cid:895): complementary goods: goods and services that are used together.