ECON 208 - Chapter 3 NOTES

ECON 208 - Chapter 3 NOTES - Demand & Supply Price

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Chapter 3 - Demand, Supply, and Price In this chapter you will learn 1. What determines “quantity demanded,” the amount of some product that consumers want to purchase. 2. To distinguish between a shift in a demand curve and a movement along a demand curve. 3. What determines “quantity supplied,” the amount of some product that producers want to sell. 4. To distinguish between a shift in a supply curve and a movement along a supply curve. 5. The forces that drive market price to equilibrium, and how equilibrium price is affected by changes in demand and supply. 3.1 DEMAND What is “Quantity Demanded”? The total amount that consumers desire to purchase in some time period is called the quantity demanded of a product. Quantity bought (or exchanged) refers to actual purchases. Quantity demanded is a flow , as opposed to a stock . What determines Quantity Demanded? Own price Average income Price of other products Tastes Population
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This note was uploaded on 07/27/2011 for the course ECON 208 taught by Professor Dickenson during the Spring '07 term at McGill.

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ECON 208 - Chapter 3 NOTES - Demand & Supply Price

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