ECO101H1 Lecture Notes - Demand Curve, Economic Equilibrium, Soybean
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ECO101H1 Full Course Notes
Marginal cost (mc) = additional cost if action is taken. Mc if output of shirts increases by one. to sewer mc = (oc of spent is ) (oc of your time) mc = (oc of spent plus oc of your time) Many buyers and sellers, each of whom has no influence on market price. Other things equal, the higher is the price of a good, the lower is the quantity demanded. Market demand curve: sum of individual demand curves. No change in: price of related goods, income, preferences. If price of a substitute increases, demand for good increases. If price of a complement increases, demand for good decreases. Shift in demand curve for ice cream cones: usually hot summer, sharp drop in price of yogurt cones (substitute) Other things equal, the higher is the price of a good, the higher is the quantity supplied.