BU204_03_Johnson_Jennifer_Unit_3_Homework prof correction

BU204_03_Johnson_Jennifer_Unit_3_Homework prof correction -...

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Jennifer Johnson Kaplan University BU204- 03 Macroeconomics Anthony Brogna Unit 3 November 2, 2010
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Key Terms – Definitions Demand Generally, the proposition that a higher price for a good, other things equal , leads people to demand a smaller quantity of that good” (Krugman & Wells, 2009, p. 64). To me demand is the amount of goods a buyer is willing and able to buy but also depends on changes like income, prices of related goods, tastes of consumers and ultimately, expectations too. When Nintindo came out with their first at home game station, it was very popular and sought after. This was new product and it was superior to the Atari home game system at the time. Thus, the Demand was high. At the time they introduced it they limited the amount that were available, thus the Supply was low. Good Supply “the quantity that producers are willing to produce” (Krugman & Wells, 2009, p. 71). To me supply is the amount of goods a seller is willing and able to sell, it is affected by several facts; prices, technology and expectation. To me supply is the quantity that producers are willing to sell at a given price. For example, a peanut manufacturer may be willing to produce eight hundred bags of peanuts if the price is $1 and would make substantially more bags if the market price is $2. driven by price as the higher the price the more likely the greater profits. Cause of a Movement along a curve
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is a change in the quantity demanded of a good that is the result of a change in that good’s price” (Krugman & Wells, 2009, p. 66). - Missing; Due to a change in price. Causes of a Shift of both the demand and supply curves An increase in demand is a rightward shift: the quantity demanded rises for any given price. A decrease in demand is a leftward shift: the quantity demanded falls for any given price” (Krugman & Wells, 2009, p. 71).
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