Chap003.2 - sloping. Chapter 3 - Supply and Demand: An...

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2 Chapter 3 - Supply and Demand: An Introduction Slide 7 Buyers and Sellers in Markets ± What determines the price of z Pizza? z Gasoline? Chapter 3 - Supply and Demand: An Introduction Slide 8 Buyers and Sellers in Markets ± A Market z Consists of all buyers and sellers of a good or service. ± The Demand Curve z A schedule or graph that tells us the quantity of a good that buyers wish to buy at each price. Chapter 3 - Supply and Demand: An Introduction Slide 9 Buyers and Sellers in Markets ± A Property of Demand z As price of a good or service goes down the quantity consumers wish to buy will increase. z Therefore, the demand curve is downward-
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Unformatted text preview: sloping. Chapter 3 - Supply and Demand: An Introduction Slide 10 The Daily Demand Curve for Pizza in BCS Price ($ per slice) Quantity (1000s of slices per day) 4 2 3 8 12 16 Demand Chapter 3 - Supply and Demand: An Introduction Slide 11 Buyers and Sellers in Markets Why do buyers purchase a greater quantity of pizza at lower prices? Chapter 3 - Supply and Demand: An Introduction Slide 12 Buyers and Sellers in Markets The Substitution Effect z The change in the quantity demanded of a good that results because buyers switch to substitutes when the price of the good changes....
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