ECON-1111 Chapter 4: ECON 1111 Chapter 4: Final: Chapter 4 Rapid Review
5 Dec 2016
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No barriers to entry: in a demand curve, consumers buy products from firms. A demand schedule shows the relationship between price of a product and quantity demanded: demand schedules assume ceteris paribus. Income, prices of substitutes and complements, tastes and expectations. A market demand curve shows the relationship between price of a good and quantity demanded by consumers. For a singular firm, they"re going to want to expand and produce more when profits are high. Excess demand occurs when demand is greater than the quantity supplied. The customers are going to buy more in this case than the producers are able to sell. In this case, the price will be inflated. A change in the demand curve would be caused by a change in a variable other than price. This will shift the demand curve altogether to be inward or outward: things that shift the demand curve, change in income.
