ECO100Y5 Chapter 3: ECO100 - Microeconomics Chapter 3 Textbook Notes
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ECO100Y5 Full Course Notes
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Shows how much of the product consumers want to buy. Increase in demand shifts the demand curve to the right. Decrease in demand shifts the demand curve to the left. Causes to a demand curve shift: changes in the price of related goods (substitutes and complements, changes in income (normal and inferior goods, changes in tastes, changes s expectations, changes in the number of consumers. The market demand curve is a horizontal sum of individual demand curves within the market. Shows graphically how much of a good or service people are willing to sell at any given price. Decrease in supply shifts supply curve left. Increase in supply shifts supply curve right. Causes to a supply curve shift: changes in input prices, changes in the prices of related goods/services, changes in weather. Friday, april 1, 2016: changes in technology, changes in expectations, changes in the number of producers. Occurs when price is above equilibrium price.