CAS EC 101 Lecture Notes - Lecture 4: Normal Good, Inferior Good, Demand Curve
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CAS EC 101 Full Course Notes
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4 the market forces of supply and demand. A group of buyers and sellers of a particular good or service. Buyers as a group determine demand for product. Sellers as a group determine supply of product. Market in which there are many buyers and many sellers. Each has a negligible impact on market price. Price and quantity are determined by all buyers and sellers. Quantity demanded amount of a good that buyers are willing and able to purchase. When price of a good rises, the quantity demanded of the good falls. When the price falls, the quantity demanded rises. Relationship between price of a good and quantity demanded. Market demand sum of all individual demands for a good or service. Market demand curve sum the individual demand surves horizontally. Total quantity demanded of a good varies (as price of good varies with other things constant)