Econ 104 - 4.1

Econ 104 - 4.1 - Demand Demand comes from the behavior of...

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Demand Demand comes from the behavior of buyers. The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase. Law of demand : the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises.
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The Demand Schedule Demand schedule : A table that shows the relationship between the price of a good and the quantity demanded. Example: Helen’s demand for lattes. Price of lattes Quantity of lattes demanded $0.00 16 1.00 14 2.00 12 3.00 10 4.00 8 5.00 6 6.00 4 Notice that Helen’s preferences obey the Law of Demand.
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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 0 5 10 15 Price of Lattes Quantity of Lattes Price of lattes Quantity of lattes demanded $0.00 16 1.00 14 2.00 12 3.00 10 4.00 8 5.00 6 6.00 4
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Market Demand versus Individual Demand The quantity demanded in the market is the sum of the quantities demanded by all buyers at each price. Suppose Helen and Ken are the only two buyers in the Latte
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Econ 104 - 4.1 - Demand Demand comes from the behavior of...

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