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Chapter_3_last_part - Chapter3 Chapter3 SupplyandDemand...

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Chapter 3 Chapter 3 Supply and Demand Supply and Demand
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Demand and Supply Shifters Demand and Supply Shifters Demand Curve  Shifters Supply Curve  Shifters Price of related  goods Input prices Income Technology Expectations Expectations Tastes Weather # of buyers # of sellers
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Application Application If the price of iPods decreases, what  would happen to the price and quantity of  music downloads? What if the price of iPods increases?
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Rule #1 Rule #1 When demand curve shifts, equilibrium  price and quantity change in the same  direction.   When demand shifts to the right, both price  and quantity increase.  When demand shifts to the left, both price and  quantity decrease. 
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Application What will happen to the equilibrium price  and quantity of ice cream if the price of  milk decreases? What if the price of milk increases?
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This note was uploaded on 04/28/2011 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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Chapter_3_last_part - Chapter3 Chapter3 SupplyandDemand...

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