Class Notes (806,874)
Canada (492,493)
York University (33,494)
Economics (1,498)
ECON 1000 (462)

Chapter 3 - Supply & Demand

6 Pages
Unlock Document

York University
ECON 1000
Shadab Qaiser

Chapter 3DemandSupply Demand and supply are the forces that make economies workMarketsa group of buyers and sellers of a particular good or serviceCompetitive marketthat has many buyers and sellers so no single buyer or seller can influence the priceMoney price of a good is the amount of money needed to buy itRelative price of a good is the ratio of its money price of the next beat alternative good opportunity costDEMAND1 Want it2 Can afford it3 Have a made a definite plan to buy itThe QUANTITY DEMANDED of a good or service is the amount that consumers are willing and able to buy during a particular time period and a particular priceThe LAW of demand the higher price of a good the smaller the quantity demand AND the lower the price of a good the larger the quantity demandedResults from two powerful effects Substitution effect when price of good rises people seek for substitute for it Quantity demand of the good decreases Income effect when the price of a good relative to the income increasesPeople cannot afford thing theyve bought Quantity demand of the good decreasesDemand curveThe relationship between the quantity demanded of a good and its price when all other influences on consumers planned purchase remain the sameA CHANGE in demand is when the quantity of a good that people plan to buy changes at each and every price which results in a demand curveWhen the demand increases the demand curve shifts RIGHTWARD When the demand decreases the demand curve shifts LEFTWARDSix main factors that change demand are
More Less

Related notes for ECON 1000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.