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Unformatted text preview: -demand function:-formally, mathematically, relates quantity demanded to price and other variables-generically: Qd = (price of good, income, price of substitutes, price of complements)-inverse demand curve- expresses price as a function of quantity-Quantity suppliedis the amount of a good or service that suppliers WANT to sell at a given price, holding constant other factors that affect supply-what determines supply:-price of the good/service-costs of prduction-government regulations-supply curve-shows quantity supplied at each price, holding constant other factors that affect production-there is no law of supply-can slope up, down, be vertical, or horizontal-depends on how costs vary w quantity supplied...
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- Fall '07