This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: (Change in Demand) Tutor Pricing Example: Tell a Story in Class Experiment about Tutoring: Expectations: Preferences ( can be similar to substitutes): Demand curve would go left if there’s another tutoring service that offers 2 A’s in two classes Income: Demand curve would shift right if income increases (and price of product doesn’t change) Substitutes: If a tutoring service in another class offers a cheaper price, then the demand curve for Econ tutoring will shift left. (People will go with the cheapest) What if you won’t buy the tutoring service regardless of cost? Vertical line (QD determines where it begins) When would there be a horizontal line? No matter how many people want a product, it will always be the same price. Quantity supplied (QS) – amount of a good, service, or resource that people are willing and able to sell during a specified period at a specified price Law of supply • If price rises, QS increases...
View Full Document
This note was uploaded on 09/29/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07