Unit 1 - Chapter 3

Unit 1 - Chapter 3 - Macroeconomics Chapter 3 Where Prices...

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Macroeconomics Chapter 3 Where Prices Come From: The Interaction of Supply and Demand
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The Demand Side of the Market Demand curve   A curve that shows the  relationship between the price of a product and  the quantity of the product demanded. Demand schedule   A table showing the  relationship between the price of a product and  the quantity of the product demanded. Quantity demanded    The quantity of a good or  service that a consumer is willing and able to  purchase at a given price.
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The Law of Demand The Law of Demand     Holding everything else constant, when the  price of a product falls, the quantity  demanded of the product will increase, and  when the price of a product rises, the  quantity demanded of the product will  decrease.
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The Ceteris Paribus Condition Ceteris paribus    (“all else equal”)   The requirement that when  analyzing the relationship 
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This note was uploaded on 05/06/2008 for the course ECON 112 taught by Professor Ramirez during the Fall '08 term at E. Stroudsburg.

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Unit 1 - Chapter 3 - Macroeconomics Chapter 3 Where Prices...

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