ECON101 Lecture Notes - Lecture 2: Bitcoin, Demand Curve
econ101:
1. why do we trade ?
2. increase productivity: technology, expand economy
3. price system : Supply and Demand
-Coffee Market: demand decrease as price increase
-Something that contradicts this law: 1. housing 2. diamonds 3.water
5.higher education 6. some food
-EVERYONE IS PRICE TAKER: none of buyer seller individually can
affect the market
-How to aggregate different consumers demand: SUM THEM UP
-six factors will change demand without change in price:
-1. # of buyers : —> demand(shift right parallel)
-2. alternative/substitute goods price UP or Down
-3. complements: increase price in one, drop demand in another
-3. quality
-4. income changes:
-5. preference change
-6. expectation: hope for future, if optimistic then buy more, otherwise no
Demand:
- The law of demand: Holding all other factors the same, demand increase
as price goes down.
-The influence of demand:
-1. moving on the demand curve: price goes down, quantity of demand
increase.
-2. shift D-curve parallel: 6 factors that will influence demand without
change in price ( other factors can’t be hold the same)
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Econ101: why do we trade , increase productivity: technology, expand economy, price system : supply and demand. Coffee market: demand decrease as price increase. Something that contradicts this law: 1. housing 2. diamonds 3. water. Everyone is price taker: none of buyer seller individually can affect the market. How to aggregate different consumers demand: sum them up. Six factors will change demand without change in price: # of buyers : > demand(shift right parallel) 2. alternative/substitute goods price up or down. 3. complements: increase price in one, drop demand in another. 6. expectation: hope for future, if optimistic then buy more, otherwise no. The law of demand: holding all other factors the same, demand increase as price goes down. 1. moving on the demand curve: price goes down, quantity of demand increase. 2. shift d-curve parallel: 6 factors that will in uence demand without change in price ( other factors can"t be hold the same)