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Unformatted text preview: Table that shows the relationship between the price of the good and the quantity demanded JONES SPARTAN SODA Price/Bottle Quantity When It Makes Quantity DEMANDED You Smarter DEMANDED $1.00 2 5 $0.75 4 8 $0.50 6 15 $0.25 10 20 THE LAW OF DEMAND: The Law of Demand says that a decrease in a goods own price will result in an increase in the quantity demanded, holding constant all the other determinants of demand. The Law of demand says that demand curves are inversely related (negative slope) CHANGE IN QUANTITY DEMANDED Change along the demand curve. CHANGE IN DEMAND Entire shift of the Demand Curve either outward (right) or inward (left) DEMAND DETERMINANTS Q DJ = P J (Taste)(Income)(P O ) The PRICE in the product DOES NOT affect the entire shift of the demand curve....
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This note was uploaded on 10/13/2011 for the course EC 201 taught by Professor Haider during the Spring '10 term at Michigan State University.
- Spring '10