Log onto Aplia during class Thursday
Relationship / locus of points relating price and quantity demanded
Max WTP (willingness to pay) / value for each unit of a good
Max quantity purchased at a given price
What determines the location of the demand curve?
What would shift the demand curve?
If you hear cheeseburgers are bad for you…
Demand curve shifts down if you like something less
What would NOT shift demand?
Both are variables on the axes of the curve
What shifts demand?
Need (necessity – something that is required in order to achieve some objective)
Prices of other things
Imagine cheeseburgers. If price of carl’s jr cheeseburgers goes
up, demand for mcdonald’s goes up
Price of substitues goes up, demand shift goes up
Compliments Price of compliments goes up, demand goes down (bullets for a
Items that can be easily substituted for each other
E.g. Desert – Eagle .50 vs. S&W 500
If the price of one goes up you will buy more of the other
Two items that work well together
Guns and ammo
Trucks and big tires