SS 141 Lecture Notes - Lecture 2: Demand Curve, Economic Equilibrium, Substitute Good
Document Summary
Ie: 34th & 7th, amazon, ebay, macy"s: markets may be, local, naional iii. Individual demand: one person: law of demand, other things equal, as price falls, the quanity demanded rises, and as a price rises, the quanity demanded falls, explanaions, prices acts as an obstacle to buyers ii. Income efect: allows or prevents from buying, subsituion efect, alternaive or subsitute from other product/service, customers demand, determinants of demand, change in consumers taste and preferences, change in the number of buyers, change in income, normal goods ii. Inferior goods: change in prices of related goods, complementary good, good that is needed in order to use an original good. Ie: charger for an iphone a: price for complimentary good goes up original good goes, subsitute good down, a good that can be used in place of the original good a. Individual supply: how much an individual is willing and able to sell at a given price.
