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Unformatted text preview: Economic complements – two goods for which an increase in the price of one leads to a decrease in the demand for the other Economic substitutes – two goods for which an increase in the price of one leads to an increase in the demand for the other Tastes – taste increases, demand increases Number of buyers – more buyers, greater demand (Buyer) Expectations – a higher expected future price, increases demand now Other Things Equal (ceteris paribus) Market Demand vs. Individual Demand Horizontal addition: add up quantities for all buyers at various prices Shift of demand curve vs. movement along P rice: movement along a (fixed) demand curve Income: shift of a demand curve Price of related goods: shift of a demand curve Tastes: shift of a demand curve Expectations: shift of a demand curve # of buyers: shift of a demand curve...
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This note was uploaded on 10/19/2008 for the course GECON 200 taught by Professor Subrick during the Spring '08 term at James Madison University.
- Spring '08