ECON 1100 Lecture Notes - Lecture 3: Demand Curve, Inferior Good
Document Summary
As price increases, quantity demand decreases: alfred marshall: called this law of demand . A table showing the relationship between price and quantity demanded. Table is gotten through research and market studies. A demand curve is drawn on the assumption that everything except the products own price is held constant. The entire relationship between the quantity of a good buyers want to purchase and the price of the good, other things being equal. Shift of demand curve movement along the demand curve. Increase in income will increase income in demand -> mornal good. Quantity supplied is the amount of goods or service producers want to sell in some period. The price of a product and quantity supplied are related positively, other things being equal. A table showing the relationship between price and quantity supplied. The supply curve is drawn on assumption that everything except the products own price is held constant.