ECO201 Lecture Notes - Economic Equilibrium, Normal Good, Demand Curve
Document Summary
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. What a buyer pays for a unit of specific good or service is called price. The total number of units that consumers would purchase at that price is called the quantity demanded. Economists call this inverse relationship between price and quantity demanded the law of demand. Economists call a table that shows the quantity demanded at each price, such as, a demand schedule. A demand curve shows the relationship between price and quantity demanded on graph like, with quantity on the horizontal axis and the price per gallon on the vertical axis. When economists talk about supply, they mean the amount of some good or service a producer is willing to supply at each price.
