supply demand incomplete

supply demand incomplete - Quantity demanded: is the amount...

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Quantity demanded: is the amount of goods that buyers are able and willing to purchase Quantity Demanded determinants: as price rises quantity demanded falls (other things equal) as price falls quantity demanded rises (other things equal) Demand curve shifts when a non-price factor raises quantity demanded at every price. Example Ice Cream 2.00 a cone buy 5 cones Ice Cream 2.50 a cone buy 3 cones Price changes you move along the demand curve If AMA says ice cream helps you live longer At 2.00 a cone you buy 10 cones At.2.50 a cone you buy 6 cones The demand curve would shift because the non-price determinant shifts quantity demanded at every price (demand curve) to right higher demand Income lowers At 2.00 a cone you buy 3 cones At 2.50 a cone you buy 1.5 cones The non-price determinant lower income shifts the demand curve to the left ( lower demand) This also represents a normal good, lower income means less demand Inferior good As income lowers you demand more of something at every price E.g. Income 5000 a month 600 a month apartment demand 20 lease signings Income 2000 a month 600 a month apartments demands 50 lease signings Inferior goods demand more as income drops Related goods If price of yogurt falls by law of demand the quantity demanded for yogurt rises You buy more yogurt at the same time you probably buy less ice cream -yogurt and ice cream are substitutes
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If the price of hot fudge falls you buy more hot fudge at the same time you buy more ice
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supply demand incomplete - Quantity demanded: is the amount...

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