MGEA02H3 Lecture Notes - Lecture 3: Demand Curve, Complementary Good, Economic Equilibrium

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carminecicada4

18 Apr 2017

School

UTSC

Department

Economics for Management Studies

Course

MGEA02H3

Professor

John Parkinson

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Document Summary

Chapter 3: demand curve, supply curve, factors causing shifts, market equilibrium, shift in equilibrium. ***only changes in marginal costs shifts the curve. Law of demand (inverse): higher price, lower demand. Demand schedule: table showing how much of good/service consumers will buy at what price. Quantity demanded: actual amount of good/service consumers will and able to buy at specific price. Shift in demand: change in quantity demanded at any given price. Movement along demand curve: change in quantity demanded arising from change in price. Entire relationship between prices and quantity of product. Increase = whole curve shifts, at every possible price, a greater quantity is demanded. One specific point, how much of product demand at specific price. Increase = movement from point to point, price of product decreased. Shifts in demand: changes in substitute & complementary goods/services, changes in consumer"s income, changes in tastes/preferences, changes in expectations, changes in number of consumers, substitute & complementary.

Related Questions

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,

all nonprice determinants of demand are held constant.

only price is held constant.

all determinants of quantity demanded are held constant.

d. income and price are held constant.

When the price of a good or service changes,

	a.	there is a movement along a given demand curve.
	b.	the demand curve shifts in the opposite direction.
	c.	the supply curve shifts in the opposite direction.
	d.	the demand curve shifts in the same direction.