Document Summary

Demand: y quantity demand: the amount of any good that buyers are willing to purchase y law of demand: the claim that quantity demanded of a good falls when the price of the good rises. Demand curve shifter: y shows how price affects quantity demanded y changes shift the d curve y. Increase # of buyers -> increase quantity demanded at each price -> shift d. An increase in income shifts d curves for inferior goods to the left. Demand curve shifter: expectations y expectations affect consumers buying decisions: example: if people except their income to rise, their demand for meals at expensive restaurants may increase. Supply: y quantity supplied: any good is the amount that sellers are willing and able to sell y law of supply: quantity supplied of good rises when the price of the good rises. Supply curve shifters: y shows how price affects quantity supplied y changes in them shift the s curve.