05 -- Microeconomics

05 -- Microeconomics - CPA BEC - STUDY UNIT 5...

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CPA BEC - STUDY UNIT 5 Microeconomics: Core Concepts A. Demand, Supply, and Equilibrium 1. Demand is the willingness and ability of consumers to purchase goods and services at various prices during a period of time. Quantity demanded is the amount that will be purchased at a specific price during a period of time. a. The law of demand holds that, if all other factors are held constant, the price of a product and the quantity demanded are inversely related; in other words, the higher the price of a good, the lower the quantity demanded. Accordingly, the demand curve is downward sloping . 2. The determinants of demand are factors other than price that affect the quantity of goods and services consumers purchase. A change in one of the determinants of demand results in a change in demand , that is, a shift of the demand curve itself. 3. Supply is the amount of goods and services that producers are willing and able to offer to the market at various prices during a specified period of time. Quantity supplied
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This note was uploaded on 08/29/2010 for the course CBEAM BEC taught by Professor Gleim during the Spring '10 term at De La Salle Lipa.

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