Chap 3 Class notes - Chapter 3 Class Notes Chap 3 Class...

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Chapter 3 Class Notes Chap 3 Class notes 1. Demand Supply and market 2. Market a. Interaction between buyers and sellers b. Buyers demand goods c. Sellers supply goods d. Assumptions i. Large numbers ii. Standardized good iii. Competitive market 3. Demand a. Schedule or curve i. Consumers are willing and able to by if they have time b. Quantity Demanded i. Lower because prices are high c. Law of Demand i. As princes fall, other things equal, the quantity demanded increases ii. Price of related goods also effects this relationship 1. Diminishing marginal utility a. Eating a shit ton of burgers d. Income effect i. People can only spend so much of their income e. Substitution effects
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Chapter 3 Class Notes i. When prices are lower ii. Gives an incentive to substitute for higher price goods iii. Consumers believe higher prices = better than normal iv. Quantity demanded increases f. Individual Demand i. Price goes up on a single item the demand goes down g. Determinants of Demand i. Other things being equal
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This note was uploaded on 05/09/2011 for the course ECON 102 taught by Professor Ashookshulka during the Spring '11 term at Harrisburg Area Community College.

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Chap 3 Class notes - Chapter 3 Class Notes Chap 3 Class...

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