ECON 201 Lecture Notes - Lecture 4: Demand Curve, Inferior Good, Normal Good
19 Jan 2017
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Document Summary
Market: a group of buyers and sellers of a particular good or service. Both the buyers and sellers are price takers they can buy all that the want and sell all that they want at the market price. Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. Demand schedule: a table that shows the relationship between the price of a good and the quantity demanded. Demand curve: a graph of the relationship between the price of a good and the quantity demanded. Variables that influence buyers (income, prices of other goods, tastes, number of buyers, technology, expectations) these shifts the demand curve. A change in the price of the good constitutes a movement along the demand curve.
