10 Friday, September 15, 2006

10 Friday, September 15, 2006 - .75 D D D 6 Q 5 Q 11 Q...

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Friday, September 15, 2006 Microeconomics QUANTITY DEMANDED – The amount of a good or service that consumers are willing and able to buy DEMAND – the relationship between the price and the quantity of a good or service that consumers are willing and able to buy. Price Demand curve LAW OF DEMAND- the lower the price of Is downward sloping of a good or service, the greater the quantity And thus reflects of that good or service that is demanded. The law of demand. Quantity Demand Ex. Price per glass of lemonade Quantity of glasses demanded $0 12 $0.25 10 $0.50 8 $0.75 6 $1.00 4 $1.25 2 $1.00 0 Price of lemonade $1.50 $1.25 $1.00 DEMAND SCHEDULE $0.75 $0.50 $0.25 2 4 6 8 10 12
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Friday, September 15, 2006 MARKET DEMAND – The sum of all the individual demand curves Person A Person B Market P P P .75 .75
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Unformatted text preview: .75 D D D 6 Q 5 Q 11 Q DETERMINANTS OF DEMAND 1. Price of the product = A change here results in a change in quality demand 2. Consumers income or wealth 3. The price of other goods and services A change here results in a change in demand 4. Expectations about the future 5. Tasks or fashions 6. # of buyers in the market A change in quantity demanded is represented by a movement along the curve A change in demand causes the entire Demand curve to shift PRICE OF PRODUCT P If price falls, quantity demanded increases P1 A If price goes up, quantity demanded decreases P2 D Q1 Q2 Q CONSUMERS INCOME ON WEALTH P P1 Suppose an increase in income D D1 Q1 Q2 Q the demand shifts out if income increases...
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This note was uploaded on 03/20/2008 for the course EC 201 taught by Professor Xasdf during the Fall '08 term at N.C. State.

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10 Friday, September 15, 2006 - .75 D D D 6 Q 5 Q 11 Q...

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