lect01_review - Supply and Demand 1. Prices, quantities of...

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Supply and Demand 1. Prices, quantities of goods that are bought and sold, and resource allocations are determined by supply and demand. 2. Related concepts for Demand: a. Quantity demanded – the amount a consumer is willing and able to buy, a number b. Demand curve – the functional relationship between quantity demanded and price, holding constant everything else c. Demand function - the functional relationship between quantity demanded and price and all other factors that influence a consumer’s demand for a product. 3. Related concepts for Supply: a. Quantity supplied – the amount a firm is willing and able to sell, a number b. Supply curve – the functional relationship between quantity supplied and price, holding constant everything else c. Supply function – the functional relationship between quantity supplied and price and all other factors that influence a firm’s supply decision. 4.
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lect01_review - Supply and Demand 1. Prices, quantities of...

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