Unformatted text preview: Changes in Prices and Quantities ± A Change In Income z Inferior Good ² One whose demand decreases (increases) when the incomes of buyers increase (decrease). ² Can you think of an example of an inferior good? Chapter 3 - Supply and Demand: An Introduction Slide 53 The Effect of the Release of Jurassic Park on the Market for Toy Dinosaurs Price Toy Dinosaurs (units per month) P Q D S D’ P’ Q’ D’ = demand after release of movie Chapter 3 - Supply and Demand: An Introduction Slide 54 The Effect of a Credible Rumor on the Market for Apple Macintosh Computers Price Apple Computers (units per month) P Q S D P’ Q’ D’ D’ = demand after rumor of cheaper model soon to be released...
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- Spring '08