ECON101 Lecture Notes - Lecture 2: Normal Good, Demand Curve, Inferior Good
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Changes in demand factors other than the price of the good would result in a change in demand. |
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Ā | a. An increase in demand is depicted as a rightward shift in the demand curve. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ā | b. An increase in demand means that consumers plan to purchase more of the good at each possible price. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ā | c. A decrease in demand is depicted as a leftward shift of the demand curve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ā | d. A decrease in demand means that consumers plan to purchase less of the good at each possible price. |
The market demand curve
a. slopes upward.
b. is found by vertically adding the individual demand curves.
c. represents the sum of the quantities demanded by all the buyers at each price of the good.
d. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
When we move along a given demand curve,
a. | all nonprice determinants of demand are held constant. | |||||||||||||
b. | only price is held constant. | |||||||||||||
c. | all determinants of quantity demanded are held constant. | |||||||||||||
d. income and price are held constant. When the price of a good or service changes,
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