ECON 160 Lecture Notes - Lecture 3: Demand Curve, Inferior Good, Normal Good
Document Summary
By agreeing to a voluntary exchange a person is revealing how much a unit of the good is worth to them(consumer preference) Demand: how much they"re willing to pay relative to price. Page 6 shows how much someone will buy for a certain price, then it totals it to market demand. The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded for either an individual or a group of individuals (market demand). Quantity demanded is the amount of a good that buyers are willing and able to purchase. The demand curve is the downward-sloping line relating price to quantity demanded. The table shows the amount of a good 6 people will buy individually and collectively at various prices. Generate market supply curve by just adding up everyone elses preferences. Quantity supplied is the amount of a good that sellers are willing and able to sell.
