127-Beat_the_Teacher_2_answers

127-Beat_the_Teacher - Beat the Teacher Highlight any errors you find in the following article Demand Demand is the quantity a buyer is willing and

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Unformatted text preview: Beat the Teacher Highlight any errors you find in the following article Demand Demand is the quantity a buyer is willing and able to sell (buy) at a given price in a given period of time. When we plot the demand curve, price is on the x axis and quantity is on the y axis. The demand curve is upward (downward remember d for downward d for demand) sloping. This is because there is an inverse relationship between price and quantity i.e. as price rises quantity falls. A movement along the demand curve is caused by a change in the price of the good. A decrease in price causing a rise in quantity demanded will cause a contraction (extension) in the demand curve. Other factors that cause quantity demanded to rise or fall make the demand curve shift. If the demand curve shifts to the left quantity demanded rises (falls remember left is less). Factors that cause the demand curve to shift include price of substitutes, advertising, indirect taxes (indirect taxes cause the supply curve to shift) and income. ...
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This note was uploaded on 02/08/2012 for the course STA 2021 taught by Professor Xu during the Spring '11 term at FIU.

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