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Lecture 3

ECON101 Lecture Notes - Lecture 3: Demand Curve


Department
Economics
Course Code
ECON101
Professor
Mesbah Sharaf
Lecture
3

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CH 3 Supply and Demand!
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Quantity Demand
Any two goods can be...!
Compliments: they are used together!
Gas & Car!
Tea & Sugar!
Substitutes: any of the two goods satisfies your need !
Unrelated !
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(+) = positive relation!
Two variables move in same direction!
(-) = negative relation!
Two variables move in opposite direction!
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Ceteris Paribus Assumption
Other factors are kept constant!
If we want to know the eect of one particular factor on the quantity demand, we have to isolate or "remove the
eect" of the other factors!
Enables us to focus on only one particular variable !
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Demand Schedule: table that shows the negative relation between P & Q*d!
Other factors are kept constant!
Demand Curve: graphical representation of the negative relation between P & Q*d!
Other factors are kept constant!
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Positive Relation%%%Negative Relation
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