EC120 Chapter 4: Chapter 4 The Market Forces of Supply and Demand.docx

• School: WLU
• Department: Economics
• Course: EC120
• Professor: Houman Mortazavi

Document Summary

Buyers and sellers so numerous that nobody can affect the market price each is a. Milk at grocery store, do not go and bargain for discount. We usually assume that markets are perfectly competitive. In the real world, there are relatively few perfectly competitive markets. 2. demanded at each price, which shifts the curve to the right. Demand for a normal good is positively related to income: increase in income causes increase in qd at each price, shifting the demand curve to the right (faster for luxury than necessity) If price of computers rises, people buy fewer computers, and therefore less. Ec120 microeconomics, kyle somerville software (software developers would expect the demand to decrease drastically) Software demand curve shifts left: other examples: college tuition and textbooks, bagels and cream cheese, eggs and bacon, tastes & preferences: anything that causes a shift in tastes toward a good will increase demand. Example: the atkins diet became popular in the.