Theamountofagoodthatbuyersarewillingandable

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: moting general nterest economic well-being. economic 2.2 DEMAND 2.2 Demand quantity demanded People have almost unlimited wants but limited resources. Wants become demands when backed by purchasing power. the amount of a good that buyers are willing and able to purchase law of demand Ceteris paribus (other things equal), the quantity demanded of a good falls when the price of the good rises demand vs price ­ negatively related 2.2.1 DEMAND SCHEDULE AND CURVE 2.2.1 Demand Schedule a table that shows the relationship between the price of a good and the quantity demanded Demand Curve a graph of the relationship between the price of a good and the quantity demanded The demand schedule shows the quantity demanded at each price. the The demand curve, which graphs the demand schedule, shows how the The demand schedule The quantity demanded of the good changes as its price varies. Because a lower price increases the quantity demanded, the demand curve slopes downward. downward. Price of $3. 50 Ice­cream Cone 1. A decrease in price… $3. 00...
View Full Document

This note was uploaded on 12/06/2011 for the course BUSINESS Finance taught by Professor Qiuxin during the Summer '11 term at Nanjing University.

Ask a homework question - tutors are online