ECON 102 Chapter Notes - Chapter 4: Peanut Butter, Demand Curve, Monopolistic Competition
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ECON 102 Full Course Notes
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Demand: quantity (q) demanded: the number of a particular good that buyers are willing and able to purchase. The amount of quantity demanded depends on the price of a good. Per the law of demand, there is an inverse relationship between quantity demanded and price: as price raises, demand lowers; as price lowers, demand raises. A demand schedule shows the q demanded at each price, and when graphed, this represents the demand curve. Market demand is the sum of all the individual demands: changes in qd: either through price or a shift factor (graphs via glogster. com) Price changes: as shown by the rst gure, when the price of a good goes up or down, the consumer demand will move along the demand curve to determine the qd. Shift, right or left, in the entire demand curve: a shift to the right indicates an increase in demand, a shift to the left indicates a decrease in demand.