Notes-Wk2 - Section Notes Demand & Supply January 24...

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Section Notes 1 Demand (Consumers) Demand Curve: Relationship between price and quantity demanded Quantity Demanded : quantity of a good that people are willing to buy at a certain price at a certain time. Law of Demand : The higher the price, the lower the quantity demanded by consumers. What is the interpretation of price (on the y-axis) from the consumer’s perspective? __________________________________________________ What is the diFerence between a shift in demand and a change along the demand curve? ___________________________________________________ Reasons a demand curve might shift: 1. Consumer’s Preferences - Example: People no longer desire eight tracks 2. Consumer’s Incomes (a) Normal v. Inferior Goods - Example: _______________________ 3. Number of Consumers in the Market - Example: _______________________ 4. Prices of Closely related goods (a) Substitutes vs. Complements - Example: _______________________ Practice Exam Question #2 Question 6 from Chapter 3 (Demand only) 1
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Notes-Wk2 - Section Notes Demand & Supply January 24...

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