ECON 110 Lecture 5: Ch. 3 Demand and Supply

• School: Queen's University
• Department: Economics
• Course: ECON 110
• Professor: Ian James Cromb

Document Summary

The albert koehl article toronto learns the cost of free parking , http://www. theglobeandmail. com/globe-debate/toronto-learns-the-cost-of- free-parking/article25974511/, is about this market-maker app rover which, just as ber matches drivers and commuting customers, matches drivers and driveway-owners. Drivers demand daytime parking spots and driveway-owners supply parking spots. Technology enables the use of previously idle resources by those who are willing to pay for their use. A new surplus (i. e. consumer"s plus producer"s) is generated upon this new technology. The quantity demanded of a good or service is the quantity consumers are willing to purchase at a given price. Nb of course if another factor affecting demand changes, quantity demanded will change. The price change induces a movement along the demand curve. This is due to consumers switching to and from substitutes and the ease and speed with which they can switch. This substitutability is reflected in the concept of price elasticity of demand analytically considered later.