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ECON 304 Lecture Notes - Lecture 20: Demand Curve, Super Bowl Commercials, Opportunity Cost

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beigewhale811
21 Oct 2020
School
American River College
Department
Economics
Course
ECON 304
Professor
Rosario

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Document Summary

Changes in demand versus changes in quantity demanded. When the price of a product rises, consumers buy fewer units of that product. This is a movement along an existing demand curve. However, when one or more of the determinants changes, the entire demand curve is altered. Now at any given price, consumers are willing to purchase more or less depending on the nature of the change. This section focuses on this important distinction between changes in demand versus changes in quantity demanded. A change in demand occur whenever one or more of the determinants of demand change and demand curves shift. When demand changes, the demand curve shifts either to the right or to the left. Let"s look at each shift in turn. change in demand: occurs when one or more of the determinants of demand changes, shown as a shift in the entire demand curve. Demand increases when the entire demand curve shifts to the right.

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Related Questions

Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?

Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.).

Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?

Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?