ECON 102 Lecture Notes - Ceteris Paribus, Giffen Good, Conspicuous Consumption

• School: UBC
• Department: Economics
• Course: ECON 102
• Professor: Lanny Zrill

Document Summary

Amount of a good or service that consumers want to purchase. Not necessarily how much they are able to actually purchase. Price and qd are negatively related holding all other factors constant (ceteris paribus) Other examples: status goods (conspicuous consumption) A change in a variable other than a product"s own price will cause a shift in demand. Normal good qd increases when income increases. Inferior good qd decreased when income increases. Giffen good qd decreases when the product"s own price decreases (violates the law of demand) Good y is a substitute for good x when demand for good x increases when the price of good y increases. Good y is a complement for good x when demand for good x decreases when the price of good y increases. Qs is the amount of good or service that producers want to produce at a given price. Price and qs and positively related holding all other factors constant (ceteris paribus)