Chapter 3 - Chapter 3 Market- any organized exchange of a...

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Chapter 3 Market - any organized exchange of a good or service between buyers and sellers Demand - used to describe the actions of buyers Quantity demanded - the amount of some good or service that buyers are willing and able to buy, at a specific price, in a given period of time Law of Demand - when the price of a good/service increases, the quantity demanded will decrease, all else equal. When the price decreases, the quantity demanded will increase, all else equal. Demand schedule - a table showing the quantity of a good/service that would be demanded, at a number of different prices. All other influences on customers are held constant. Demand curve - a graph of the information in a demand schedule. To get a market demand, add up the individual demands for all of the individuals in the market. The market demand curve shows the willingness to pay of the consumers in the market. If there is a change in the price of a good, the change in price will cause a movement along the existing demand curve for that good. If any influence on buyers other than the price of the good changes, the change will cause a shift to an entirely new demand curve. A change in quantity demanded refers to a movement along an existing demand curve
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Chapter 3 - Chapter 3 Market- any organized exchange of a...

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