ECON-1006EL Lecture Notes - Lecture 1: Demand Curve, Normal Good
20 Jun 2018
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Statements.
The price elasticity of demand is the ratio of the percent change in the quantity
demanded to the percent change in the price as one moves along the demand curve
A perfectly inelastic demand curve for a product (ie insulin) would mean that the quantity
demanded does not respond at all to the change in the price of the product (insulin).
If an individuals income rises, and there consumption (or demands) also increase, this
means the goods are normal goods for that individual.
Concept: Supply and Demand.
Why I think it is a key concept: The concept of supply and demand is
extremely important as the diagrams can show where equilibrium is
reached, and how the increase or decrease of different factors including,
land, labour, capital, income, and competitors prices can affect the
demand of a certain product. This concept also shows surplus and
shortages, overall showing how much of a product is demanded or
deemed necessary. 5 Key Concepts of the supply and demand curve…
-The demand curve
-The supply curve
-The set of factors that cause the demand curve to shift and the set of
the factors that cause the supply curve to shift
-The market equilibrium
-The way the market equilibrium changes when the supply curve or demand curve shifts.
find more resources at oneclass.com
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Document Summary
The price elasticity of demand is the ratio of the percent change in the quantity demanded to the percent change in the price as one moves along the demand curve. A perfectly inelastic demand curve for a product (ie insulin) would mean that the quantity demanded does not respond at all to the change in the price of the product (insulin). If an individuals income rises, and there consumption (or demands) also increase, this means the goods are normal goods for that individual. This concept also shows surplus and shortages, overall showing how much of a product is demanded or deemed necessary. 5 key concepts of the supply and demand curve . The set of factors that cause the demand curve to shift and the set of the factors that cause the supply curve to shift.
