Demand schedule 1 A table showing the quantities of a good a consumer is

Demand schedule 1 a table showing the quantities of a

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Demand schedule 1. A table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus 2. Notice that the demand schedule doesn’t tell us anything about why this consumer is willing to pay specific prices for various amounts of things 3. The demand schedule tells us is what the consumer is willing and able to buy, for whatever reasons Demand Schedule and Curve 1. A demand schedule indicates the quantities of a good a consumer is able and willing to buy at alternative prices ( ceteris paribus ) 2. A demand curve is a graphical illustration of a demand schedule 3. Each point on the curve refers to a specific quantity that will be demanded at a given price 4. The demand schedule doesn’t tell us how many hours the consumer will
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actually buy, is willing and able to buy 5. Demand ” is an expression of consumer buying intentions, of a willingness to buy, not a statement of actual purchases The Demand Curve 1. A curve describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus 2. The notion of demand emphasizes is that the amount we buy of a good depends on its price 3. A common feature of demand curves is their downward slope 4. As the price of a good falls, people purchase more 5. Law of demand : The quantity of a good demanded in a given time period increases as its price falls, ceteris paribus Determinants of Demand 1. A consumer’s willingness and ability to buy a product at of forces 2. The determinants of market demand include: a. Tastes (desire for this and other goods) b. Income (of the consumer) c. Other goods (their availability and price) d. Expectations (for income, prices, tastes) e. Number of buyers 3. Other goods (their availability and price) a. Also affect the demand for tutoring services b. Their effect depends on whether they’re substitute goods or complementary goods - Substitute goods : Goods that substitute for each other; when the price of good X rises, the demand for good Y increases, ceteris paribus - Complementary goods : Goods frequently consumed in combination; when the price of good X rises, the demand for good Y falls, ceteris paribus Ceteris Paribus 1. We know a consumer’s tastes, income, other goods, and expectations all
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affect the decision to hire a tutor 2. But we want to focus on the relationship between quantity demanded and price 3. We want to know what independent influence price has on consumption decisions 4. To find out, we must isolate that one influence, price , and assume that the determinants of demand remain unchanged 5. Ceteris paribus : The assumption of nothing else changing 6. Demand curves show us how changes in market prices alter consumer behavior Shifts in Demand 1. The determinants of demand can and do change 2. A specific demand curve may become obsolete 3. A demand curve (schedule) is valid only so long as the underlying determinants of demand remain constant 4. If the ceteris paribus
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