ECON 1100 Chapter Notes - Chapter 3: Excess Supply, Shortage, Demand Curve

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Consumers (households) demand the goods and services (for utility) The business firms supply the goods and services (for profit) Consumer tastes or preferences (t) - (if you like them, you demand more) Consumer income (m) - (more money you have, the more you have to spend) Depends on prices of other goods/commodities (p*) If something similar is cheaper, you might demand eggs less (milk) Mrs. clake (decision maker in house) (decision maker in house) (decision maker in house) * if 500 were interviewed, we multiply by the total population factor . Ceteris paribus assumption (as the price of eggs decrease, the demand is higher) In other words meaning all other things held constant . Or if all other variables that influence the demand for _____ did not change . T,m,p* do not change in this case, while p changes. The individual demand schedule is shown above (table format)

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