Class Notes - 9-10-07

Class Notes - 9-10-07 - Microeconomics Class Notes Part B...

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Microeconomics – Class Notes – 9/10/07 Part B. If there is a decrease in Demand, o Quantity Demanded is lower for each price o Does not affect price (the quantity demanded is lower, but this does NOT affect the price C. Causes of changes in Demand o 1. If there is a change in Consumer preferences, there will be a shift in the Demand Curve. Example: Shoes become really popular – This will lead to a shift in the Demand curve (positive relationship between increase in taste for a product and demand) o Change in consumer information Example: A product becomes unpopular due to a scientific study (smoking). There will be a decrease in demand. o Change in Consumer Income Normal goods – Goods for which the demand increases according to an increase in income . Inferior goods – Goods for which the demand increases according to a decrease in income . (Goods that you settle for when you’re poor). o
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This note was uploaded on 04/15/2008 for the course ECON 100 taught by Professor Stephaniemartin during the Fall '07 term at Allegheny.

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Class Notes - 9-10-07 - Microeconomics Class Notes Part B...

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