ECON 295 Lecture 4: Econ chapter 3
3 Apr 2016
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Document Summary
The total amount that consumers desire to purchase in some time period is called the quantity demanded of a product. Quantity demanded is a flow, as opposed to a stock. A basic hypothesis is that - ceteris paribus - the price of a product and the quantity demanded are negatively related. There are usually several products that can satisfy any given want or desire. A reduction in the price of a product means that the specific desire can now be satisfied more cheaply by buying more of that product. A change in variables other than price will shift the demand curve to a new position. A rightward shift indicates an increase in demand. A leftward shift indicates a decrease in demand. Shifts of and movements along the demand curve. A change in demand is a change in quantity demanded at every price - a shift of the entire curve.
