Demand vs Supply Notes

Demand vs Supply Notes - If there is an increase in supply...

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If there is an increase in supply and decrease in demand simultaneously than price will fall; quantity increases. If there is a decrease in supply and increase in demand simultaneously than price will rise, quantity decreases. If there is an increase in demand and increase in supply simultaneously than quantity will increase; price fall. If there is a decrease in demand and decrease in supply simultaneously than quantity will decrease; price increase. Individual Subsitute D Rise D Fall S Rise S Fall P (ipod) Rise D (zen) Rise P Rise P Fall P Fall P Rise P (ipod) Fall D (zen) Fall Q Rise Q Fall Q Rise Q Fall Complementary Simultaneously P (ipod) Fall D (earphone) Rise S Rise S Fall S Rise S Fall P(ipod) Ris e D (earphone) Fall D Fall D Rise D Rise D Fall P Fall P Rise P Fall P Rise Q Rise Q Fall Q Rise Q Fall D Demand P Price Q Quantity The law of demand states that when the price of a good rises and everything else remains the same, the quantity of the good demanded will fall.
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A change in a good’s price causes us to move along the demand curve. We call this a change in quantity demanded. A rise in price causes a leftward movement along
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This note was uploaded on 08/06/2011 for the course ECON 1223 taught by Professor Leo during the Spring '11 term at Century College.

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Demand vs Supply Notes - If there is an increase in supply...

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