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Unformatted text preview: ncrease in the price of one leads to a decrease in the demand for the other Variables That Influence Buyers
Variable A Change in This Variable… Price Represents a movement along the demand curve
positive y Incomey
Price of related goods
Substitutes positive complements negative Tastes
Expectations positive Numbers of buyers
TABLE 1 positive 2.3 SUPPLY
2.3 quantity supplied law of supply other things equal, the quantity supplied of a good rises when the price of the good rises supply schedule the amount of a good that sellers are willing and able to sell a table that shows the relationship between the price of a good and the quantity supplied supply curve a graph of the relationship between the price of a good and the quantity supplied Price of Quantity of Price of IceCream Cones Cone
0.50 0 1.00 1 1.50 2 2.00 3 2.50 4 3.00 5 FIGURE 5 Price of
0 1 2 3
Quantity of Ice
cream Cones 2…increase quantity of cones supp...
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- Summer '11