ECON 102 Lecture Notes - Lecture 4: Demand Curve, Inferior Good, Normal Good
18 May 2017
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Document Summary
Market: a group of buyers and sellers of a particular good or service. Competitive market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. We begin our study of markets by examining the behaviour of buyers (consumer behaviours). Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises. Demand schedule: a table that shows the relationship between the price of a good and the quantity demanded. Demand curve: a graph of the relationship between the price of a good and the quantity demanded. Market demand: the sum of all the individual demands for a particular good or service. Market demand = all the consumers added up.
