ECO 1104 Lecture Notes - Inkjet Printing, Demand Curve, Inferior Good

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

Hula hoops, kids" bicycles, pork in light of the h1n1 virus, blackberries. Don"t worry about this factor despite the fact that it appears in the textbook. The demand curve shows the relationship between p and qd holding other factors, such as preferences, incomes, and prices of related goods constant. If you are given a change in price, which is the variable on the y-axis, move. This means that if those other factors, which do not appear on either axis are not constant, there is a new demand relationship. If you are given a change in any of those other factors, shift the demand curve. The direction depends on the particular case. The eleventh commandment: do not shift a demand curve due to a change in price ever. Consumer preference, prices of related goods: substitutes and complements, Consumer incomes (must know whether it is a normal or inferior good) For each case, one has to determine two things.