ECON 1BB3 Lecture : January 17th, 2012

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Quantity demanded (qd): the amount of a good that buyers are willing and able to purchase. The variables that influence how much buyers want to buy are: price, income y normal and inferior goods, price of other goods y substitutes and complements, tastes, expectations. Law of demand: other things equal (ceteris paribus), the quantity demanded of a good falls as the price of the good rises. Shifts in demand (change in demand) are caused by a change in anything other than price. Movement along the demand curve (change in quantity demanded) is caused by a change in price y y. Quantity supplied (qs): the amount of a good that sellers are willing and able to sell. The variables that influence how much sellers want to sell are: price, input prices, technology, expectations. Law of supply: other things equal (ceteris paribus), the quantity supplied of a good rises as the price of the good rises.