ECO101H1 Lecture Notes - Open Economy, Plasma Display, Substitute Good
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ECO101H1 Full Course Notes
Verified Note
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Determinants of quantity demanded; time, desire, determinants: substitute goods, complimentary goods, change in taste and preferences, price. Determinants of quantity demanded: price of x **- prime determinant of q d, income, price of substitute, price of compliment goods, taste/ preferences, price expectation, population. Normal good- income bigger, buy more: b) Inferior goods, income goes up, buy less- better goods to replace it: c) 3) price expectation- rarely dealth with it. D2= increase in demand, income increase, this good is normal, income decrease, inferior good increase. D3= decrease in demand ;bad media, a cheaper substitute good. Change in price cause movement not as same as shift. Quantity supplied qs: price of good x ** mainly used , price of input (raw materials), price of good y, technology: Higher line- quantity demand less than quantity supplied. Ab= excess supply in market place= 6 units. Increase in demand, increase in equilibrium price, and increase in equilibrium quantity.
