ECO105Y1 Lecture Notes - Lecture 3: Marginal Utility, European Cooperation In Science And Technology, Variety Store
Document Summary
If not you would be willing and able to pay more because you get the item instantly (cookie auction) Demand willingness and ability to pay for a particular product it depends on the cost and availability of substitutes. You don"t have a demand from a market perspective if you do not have the resources to pay. The relationship between price and quantity is the law of demand. Quantity demand and demand are not the same. All the factors that affect demand did not change. Allergies do not change, the amount of money you have does not change during the experiment auction. Someone is willing and able to pay . 00 for the 3000th cubic meter of water. It does not mean 3000 cubic meters of water = 2 dollars. Yes so using a linear model is okay as a model. Demand changes with consumer circumstances and external influence.
