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Unformatted text preview: Cause the demand schedule to
shift to the left (-) or to the right
(+) Defined as a change in demand
Changes in demand caused by: Number of buyers Tastes and preferences
Income Expectations of buyers
Expectations Prices of related goods
See Exhibit 3, page 54
See Exhibit 4, page 55
12 MOVEMENT ALONG VS. A
SHIFT OF THE DEMAND
SCHEDULE, P. 59
SCHEDULE, Figure 3.3 THE MARKET DEMAND FOR
COMPACT DISCS, P. 57
COMPACT Figure 3.2 SUMMARY: IMPACT OF
CHANGES IN NONPRICE
DETERMINANTS OF DEMAND,
Pages Number of buyers (+) Tastes and preferences (+) Incomes
Incomes Normal good = (+) Inferior good = (-) Future price expectations (+) Prices of related goods in consumption Substitute goods (+) Complementary goods (-)
15 THE PRODUCT MARKET:
DETERMINANTS OF SUPPLY
DETERMINANTS The meaning of “supply” A hypothetical choice function which
relates quantity supplied of X to P(x),
all other things equal P(x) as a determinant of supply: A change in the P(x) causes the
quantity of X supplied to change, all
other things equal
16 AN INDIVIDUAL SELLER’S SUPPLY
SCHEDULE FOR COMPACT DISKS, P.
64 Figure 3.4 NONPRICE DETERMINANTS OF
SUPPLY, Page 69.
SUPPLY, Cause the...
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This note was uploaded on 01/12/2012 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.
- Spring '08