Economics 1021A/B Lecture Notes - Lecture 3: Demand Curve, Relative Price, Inferior Good

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Jeannie Ann Shearer

Document Summary

A competitive market is a market that has many buyers and sellers, where no single buyer or seller can influence the price. The ratio of one price to another is called a relative price. The quantity demanded is the amount of a good or service that consumers plan to buy in a given period at a particular price. Other things remaining the same, the higher the price of a good, the smaller the quantity demanded. The lower the price of a good, the higher the quantity demanded. Demand refers to the relationship between the price and quantity demanded of a good. Demand is represented by a demand schedule or a demand curve. A demand curve shows the relationship between the quantity demanded and price of a good when all other influences remain the same. When any factor that influences buying other than price changes, there is a change in demand.