ECON 304 Lecture Notes - Lecture 18: Candy Crush Saga, Demand Curve, Mobile Game
21 Oct 2020
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Principles of microeconomics law of demand: holding all other relevant factors constant, as price increases, quantity demanded falls, and as price decreases, quantity demanded rises. To illustrate, when videocassette recorders first came on the market 35 years ago, they cost ,000, and few homes had one. As vcrs became less and less expensive, however, more people bought them, and others found more uses for them. Two decades later, vcrs became obsolete as dvd players became the standard means of watching movies at home. Today, dvd players are becoming obsolete as digital movie streaming surpassed dvd sales. Similarly, digital music players have altered the structure of the music business, and digital cameras have essentially replaced cameras that use film. The law of demand states that as price decreases, quantity demanded increases. When we translate demand information into a graph, we create a demand curve. This demand curve, which slopes down and to the right, graphically illustrates the law of demand.
