Quiz 2 Notes (WK2)

Quiz 2 Notes (WK2) - Quiz 2 Notes (WK2) Quiz2Explanations...

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Quiz 2 Notes (WK2) Quiz 2 Explanations Grace Onodipe 25 Jan 10
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A movement from point B to C is an increase in quantity demanded, not a decrease in  quantity demanded. Remember that it is only the OWN Price of a good that can cause a movement ALONG  a demand curve. All other factors cause SHIFTS.  There is a big difference between “change in quantity” and “change in quantity  demanded.” Please note the difference.  If the price of a beer increases and  beer and pizza are complements , then we can  predict that the DEMAND for pizza will also decrease (that would be a leftward SHIFT). If a good is NORMAL, it means that if income decreases a consumer would demand  less of the good. Increase in income would lead to a shift from D2 to D3. Movement along the curve  comes as a result of a change in the price. You would buy MORE of an INFERIOR GOOD if your income decreases. 
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Quiz 2 Notes (WK2) - Quiz 2 Notes (WK2) Quiz2Explanations...

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