Chapter 3 Supply and Demand

Chapter 3 Supply and Demand - Chapter 3 Supply and Demand -...

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Chapter 3 Supply and Demand - The Law of Demand o Demand- A schedule of how much of a good or service people will purchase at various prices during a specifici time period with other things being equal. o Law of Demand- There is a negative or inverse relationship between the price of any good or service and the quantity demanded holding other factors constant. People buy more of a product when the prices fall - The Demand Schedule o Listing of alternative quantities demanded per year at different possible prices As price goes up quantity goes down As price goes down quantity goes up o The demand curve- a graphical representation of the demand schedule a negatively slopped line showing the inverse relationship between the price and the quantity demanded What causes changes in demand: o Change in income o Change in tastes of consumers o Change in prices of competitor products o Change in market sale o Change in quantity demanded -
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Chapter 3 Supply and Demand - Chapter 3 Supply and Demand -...

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