Class Notes (839,189)
Canada (511,223)
Economics (472)
ECON 102 (134)
Lecture

01.14 - Supply and Demand.docx

2 Pages
101 Views

Department
Economics
Course Code
ECON 102
Professor
Lanny Zrill

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
Supply and Demand 01-14-2013 Quantity Demanded  Amount of a good or service that consumers want to purchase  Not necessarily how much they are able to actually purchase What determines QD? o Product’s own price o Consumer’s income o Prices of other products o Tastes o Expectations about the future Law of Demand  Price and QD are negatively related holding all other factors constant (ceteris paribus)  Why is this the case? o The availability of close substitutes  Other examples: o Status goods (Conspicuous consumption) o Insulin o Cheap Shots in Hockey  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 Goo
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit