ECON 201 Chapter Notes - Chapter 3: Ceteris Paribus, Demand Curve, Normal Good
Document Summary
Demand schedules - a table that shows the relationship between the price of a product and the quantity of the product demanded. Quantity demanded - the amount of a good or service that a consumer is willing and able to purchase at a given price. Demand curves - curves that show the relationship between the price of a product and the quantity of the product demanded. Market demand - the demand by all the consumers of a given good or service. The law of demand - the inverse relationship between the price of a product and the quantity of the product demanded (holding other factors constant) When the price of a product rises, the quantity demanded will decrease. Now the product is less expensive relative to substitute products. The purchasing power of consumers" incomes has increased. Holding everything else constant the ceteris paribus condition.
