Ch04lecture - CHAPTER CHECKLIST When you have completed your study of this chapter you will be able to 1 Distinguish between quantity demanded and

Info iconThis preview shows pages 1–18. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Distinguish between quantity demanded and demand and explain what determines demand. 1 Distinguish between quantity supplied and supply and explain what determines supply. Explain how demand and supply determine price and quantity in a market and explain the effects of changes in demand and supply. 2 3
Background image of page 2
COMPETITIVE MARKETS A market is any arrangement that bring buyers and sellers together. In this chapter, we study a competitive market that has so many buyers and so many sellers that no individual buyer or seller can influence the price.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND Quantity demanded The amount of a good, service, or resource that people are willing and able to buy during a specified period at a specified price. The quantity demanded is an amount per unit of time. For example, the amount per day or per month.
Background image of page 4
4.1 DEMAND The Law of Demand Other things remaining the same, If the price of a good rises, the quantity demanded of that good decreases. If the price of a good falls, the quantity demanded of that good increases.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND Demand Schedule and Demand Curve Demand The relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same. Demand is a list of quantities at different prices and is illustrated by the demand curve.
Background image of page 6
4.1 DEMAND Demand schedule A list of the quantities demanded at each different price when all the other influences on buying plans remain the same. Demand curve A graph of the relationship between the quantity demanded of a good and its price when all other influences on buying plans remain the same.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND Individual Demand and Market Demand Market demand The sum of the demands of all the buyers in a market. The market demand curve is the horizontal sum of the demand curves of all buyers in the market.
Background image of page 10
4.1 DEMAND
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 12
4.1 DEMAND Changes in Demand Change in the quantity demanded A change in the quantity of a good that people plan to buy that results from a change in the price of the good. Change in demand A change in the quantity that people plan to buy when any influence other than the price of the good changes.
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND Figure 4.3 shows changes in demand. 1. When demand decreases, the demand curve shifts leftward from D 0 to D 1 . 2. When demand increases, the demand curve shifts rightward from D 0 to D 2 .
Background image of page 14
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4.1 DEMAND The main influences on buying plans that change demand are: Prices of related goods Income Expectations Number of buyers Preferences
Background image of page 16
4.1 DEMAND Prices of Related Goods Substitute A good that can be consumed in place of another good. For example, apples and oranges. The demand for a good
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 18
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/28/2009 for the course MATH Ec101 taught by Professor Mr.keohane during the Fall '08 term at Louisiana College.

Page1 / 72

Ch04lecture - CHAPTER CHECKLIST When you have completed your study of this chapter you will be able to 1 Distinguish between quantity demanded and

This preview shows document pages 1 - 18. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online