ECON 1B03 Lecture Notes - Lecture 2: Demand Curve, Inferior Good, Normal Good

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21 May 2018

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A Change in Quantity Demanded

- A change in quantity demanded is movement along the demand curve due to change in the

price of the good

- The demand curve itself: does NOT move

Change in Demand

- A change in demand: is a shift of the demand curve when anything other than the price of the

good changes

- An increase in demand: D shifts right

- A decrease in demand: D shifts left

Shift Factors for Demand

Consumer Income

- As income increases, the demand for a normal good will: shift D to right

- As income increases, the demand for an inferior good will: shift D to left

Prices of Related Goods

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ECON 1B03 Full Course Notes

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A change in quantity demanded is movement along the demand curve due to change in the price of the good. A change in demand: is a shift of the demand curve when anything other than the price of the good changes. An increase in demand: d shifts right. A decrease in demand: d shifts left. As income increases, the demand for a normal good will: shift d to right. As income increases, the demand for an inferior good will: shift d to left. If 2 goods are substitutes in consumption: an increase in the price of one good will shift the demand for the other good to the right. If 2 goods are compliments in consumption: an increase in the price of one good will shift the demand of the other good to the left. Quantity supplied (qs): the quantity of goods and services firms (sellers, producers, suppliers) are willing and able to sell at any price, p.

Related Questions

What is the result of an increase in the price of bread, a normal good?

a. The demand curve shifts to the right.

b. The demand curve shifts to the left.

c. The quantity demanded increases.

d. The quantity demanded decreases.

limegnat199

Which of the following is true?

a. The demand curve for a good shift leftward when the price of a substitute rises.
b. If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
c. An increase in population shifts the demand curve for most goods leftward.
d. For an inferior good, when income increases, the demand curve shifts leftward.

maroonferret252

Which of the following would NOT shift the demand curve for a good?

A- a change in income (if the good is an inferior good).

B- A change in the price of the good.

C- a change in the price of a related good.

D- a change in the expectations about the future price of the good.

E- All of the above will shift the demand curve for a good.

A-	a change in income (if the good is an inferior good).

B-	A change in the price of the good.

C- a change in the price of a related good.

D-	a change in the expectations about the future price of the good.

E-	All of the above will shift the demand curve for a good.

limemoose245

ECON 1B03 Lecture Notes - Lecture 2: Demand Curve, Inferior Good, Normal Good

ECON 1B03 Full Course Notes

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