ECON 101 Chapter Notes - Chapter 4: Economic Equilibrium, Frozen Yogurt, Demand Curve
Document Summary
Individual demand: market demand the sum of all the individual demands for a particular good or service. The market demand curve is found by adding horizontally the individual demand curves: ex: at a price of , catherine demands 4 ice cream cones and nicholas demands 3 ice cream cones. The quantity demanded in the market at this price is 7 cones. 2 so, to find the totally quantity demanded at any price, we add the individual quantities, which are found on the horizontal axis of the individual demand curve. Any change that increases the quantity demanded at every price, shifts the demand curve to the right and is called an increase in demand. Any change that reduces the quantity demanded at every price shifts the demand curve to the left and is called a decrease in demand variables that can shift the demand curve: income.
