ECON 1BB3 Lecture Notes - Lecture 3: Monopolistic Competition, Perfect Competition, Oligopoly

• 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. Variables that influence how much buyers want to buy are: price. Income: normal and inferior goods, price of other goods. Law of demand: other things equal (ceteris paribus), the quantity demanded of a good falls as the price of the good rises. Market demand: the sum of all individual demand o. At , john buys 10 books and jeff buys 6, then the market demand is 16 books at the price of. 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) o o.