ECON 102 Lecture Notes - Lecture 9: Comparative Statics, Demand Curve, Statics

• School: University of Illinois
• Department: Economics
• Course: ECON 102
• Professor: Isaac Dilianni--- Universityof Illinois

Document Summary

Comparative statics: studying how supply and demand curves shift. Whe(cid:374)e(cid:448)e(cid:396) (cid:449)e talk a(cid:271)out i(cid:374)(cid:272)(cid:396)ease, it"s a shift to the (cid:396)ight (cid:894)(cid:374)ot a shift up(cid:895). Decrease is a shift to the left (not down). Change in demand and change in quantity demanded are different. Change in quantity demanded is just a change in the x axis. Change in demand is a shift in the entire curve. Change in quantity demanded can be determined by the given curve. Change in demand means shifting the entire curve. Qd= f ( price , consumer tastes , # of buyers , income , prices of related. Goods : if price changes, we can move along the curve, if any of the other variables change, we have to move the entire demand curve, income: If your income increases and you buy more of a good, then it is called a normal good. (steak)