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ECO 108 Lecture 4 - -Price is y-axis-Though price is the...

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In pursuit of self-interest, individuals promote social well-being. - Getting paid for your work. The incentive to work better - We are producing happiness by satisfying our own self-interest. - Invisible Hand Buyers => Demand - Quantity of demand => the amount that buyers wish to purchase at each price. - If it's expensive, you're going to buy less. If the price goes down, you're going to tend to buy more. In layman's terms: - Demand schedule - table showing the quantity of demand at each price for a specific good. - Demand and Quantity Demanded Graph of demand schedule - Negatively sloped - Quantity demanded is x-axis.
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Unformatted text preview: -Price is y-axis.-Though price is the independent variable, it goes on the y-axis.-Gives the connection between price and quantity as seen from the mind of a consumer.-Incomes Population Preferences Prices and availability of related goods Shifts in the curve-Demand Curve Supply schedule - table showing relationship of price to quantity supplied-Size of industry □ Technological progress □ Prices of inputs □ Prices of related outputs □ Shift in supply curves-Supply and Quantity Supplied Supply and Demand Tuesday, February 12, 2008 9:44 AM Feb. 12 Page 1...
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