MATH 133 Lecture Notes - Lecture 3: Demand Curve, Economic Equilibrium, Shortage

• School: McGill University
• Department: Mathematics & Statistics (Sci)
• Course: MATH 133
• Professor: Nagham Sayour

Document Summary

Factors that determine the quantity demand of a good. Distinction between a shift of the demand curve and a movement along the demand curve. Factors that determine the quantity supplied of a good. Distinction between a shift of the supply curve and a movement along the supply curve. Explain the forces that drive market price to equilibrium, and how equilibrium price is. Affected by changes in demand and supply. Quantity demanded - the total amount that consumers desire to purchase in some time period. Quantity bought (or exchanged) refers to actual purchases. Quantity demanded is a flow, as opposed to a stock. Flow variable - has a time dimension - per unit of time . Stock variable - a variable whose value has meaning at a point in time . A basic hypothesis that - ceteris paribus - the price of a product and the quantity demand are negatively related.