ECO200Y5 Lecture Notes - Ceteris Paribus, Doritos, Demand Curve
Document Summary
Four key assumptions of the supply and demand model in competitive markets: Demand is affected by (the determinants of demand): ceteris paribus all else equal. ________________________________ condition: qd and price. Law of demand- ______________________ or __________________________, ceteris paribas. Demand curve: the graphical representation of the relationship between quantity demanded and the price of a commodity, ceteris paribas. Activity: turn to the person next to you, and graph the following demand curve. Qd=240- 2p, where qd is the quantity demanded in crates of toy mice and p is the price per crate. Inverse demand curve: p=f( ) If something else that influences how much people want to buy changes, then ______________ changes (shift the entire curve) If price changes, then __________ changes (move along demand curve) Qs is influenced by (determinants of supply): 2. Supply curve: the graphical representation of the relationship between quantity supplied and the price of a commodity, ceteris paribas.