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chapter 3 - Courtney Verblaauw Chapter 3 1 The law of...

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Courtney Verblaauw Chapter 3 1. The law of demand states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. The slope is downward because when the price of a commodity falls, it becomes relatively cheaper, the consumer can buy more, and by consumers increasing it tends to raise the market demand for the commodity. A demand curve is derived from individual demand curves when you add the quantities demanded by all consumers at each of the various possible prices. 2. The determinants of demand are tastes, number of buyers, income, prices of related goods, substitutes, complements, complements, unrelated goods, and consumer expectations. An increase in demand is shown as a shift of the demand curve to the right while a decrease in demand occurs when consumers buy less at each possible price than is indicated. A change in demand is a shift of the demand curve while a change in quantity demanded is a movement from one point to another on a fixed demand
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