The Market Forces of Supply and Demand

The Market Forces of Supply and Demand - 02:07 (negslope...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The Market Forces of Supply and Demand 02:07 Law of demand  – quantity demanded falls as price rises (neg slope) Market demand  – sum of demand of all consumers (horizontally) Increase in quantity demanded vs. Increase in demand:               A                    B Increase in quantity demanded:            Increase in demand: Occurs bc price has changed                 Demand curve itself shifts Movement along demand curve             Change in relationship btwn P and D Increase in demand   shift to the right Decrease in demand (i.e. housing market in recession)   shift to the left Normal Good  – an increase in income leads to an increase in demand i.e. luxuries Inferior Good  – an increase in income leads to a decrease in demand i.e. public transportation (ppl buying cars) Substitutes
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern