ECN 191 Lecture Notes - Lecture 7: Excess Supply, Inferior Good, Whiteboard
Document Summary
Price affects demand - graph (per unit price, quantity/time) Utility is subjective (exists only in your mind, can"t have the other"s experience, difficult for outside party to understand, individual experiences and differs from person to person) Cost of engaging in an activity (price) goes in opposite of pounds of apples per year. Price goes up, quantity goes down - price goes down, want to buy more. At a price of __, the quantity demand of __ is ___ At a price of , the quantity demand of pounds of apples is # The quantity demanded of some good/service changes in opposite direction of its price. A change in price causes a change in quantity demanded not in demand, isolate prices. Cause in quantity demand - 6 determinate of demand (moves demand curve) 6 conditions of demand - if it changes, demand curve goes in/out. He would not buy blue cheese because he doesn"t like it, even if it was free.
