ECON 101 Lecture 3: Economics101-Lecture 3-Caldwell

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: Ronald C Caldwell

Document Summary

Factors that cause demand curves to shift. Change in the price of related goods. Complements - two goods used jointly in consumption. Increase in price of a complement results in leftward shift in demand curve. Decrease in price of a complement results in rightward shift in demand curve. Substitutes - two goods that satisfy similar wants or desires. Increase in price of a substitute results in rightward shift in demand curve. Decrease in price of a substitute results in leftward shift in demand curve. A good for which demand increases when income increases. An increase in income causes a rightward shift in demand curve. A decrease in income causes a leftward shift in demand curve. A good for which demand decreases when income increases. An increase in income causes a leftward shift in demand curve. A decrease in income causes a rightward shift in demand curve. Increase in number of consumers leads to rightward shift.