1.20.10 - Lecture Notes Econ 201

1.20.10 - Lecture Notes Econ 201 - Table that shows the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1.20.10 – Lecture Notes, Econ 201 Basic Economic Choices: How? For Whom? Alternative Economic Systems Command Market Organization Centralized Decentralized (One power choosing) (We choose as consumers) Resources Public Private [Ownership] (Government owns everything) (You Own) Most economies go toward the market economy. ADAM SMITH 1776 – The Wealth of Nations “Invisible Hand” - Prices - Markets CIRCULAR FLOW DIAGRAM Firms $ Households Resources Firms Goods & Services Households $ Firms (In a circle position) Households supply the firms demand for resources (work) and money Product Market: Demand Product: Beverage Soda Pop: 50 gallons/year Cola: 55% Determinants: Q Demand of Jones Soda = Price Jones Taste (Physical & Interests) – Income Price of similar goods Demand Schedule:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

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.

Page1 / 2

1.20.10 - Lecture Notes Econ 201 - Table that shows the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online